Millicom Settles Senegal License Dispute
Published on: 28th Aug 2012
Note -- this news article is more than a year old.
Millicom International Cellular says that it has settled its mobile license dispute with the government of Senegal. This settlement is subject to the signing of final documentation between Millicom and the Republic of Senegal, as well as the publication of an amended license.
Under this agreement, the validity of Millicom's Senegal subsidiary's license will be recognised by both parties.
In addition, Millicom will be granted a 3G license, an alignment of its license terms with those of the other operators (meaning that Millicom will receive licenses to offer fixed line, WiMAX and cable TV services for instance), some additional spectrum and a 10-year extension of the term of its current license until 2028.
Millicom has agreed to pay USD103 million for these additional license rights and spectrum. The USD103 million will be paid in several installments between closing of the agreement and December 2013.
Mikael Grahne, Millicom CEO commented: "We are delighted to have reached an agreement with the newly elected government of the Republic of Senegal in a way that will be beneficial to both parties involved, as well as to the people of Senegal and our Tigo customers."
In conjunction with today's announcement, both parties are asking for a 3-month suspension of the ongoing arbitration proceedings, initiated in 2008 before the ICSID (International Centre for Settlement of Investment Disputes), in order to finalize the documentation needed for the transaction to close.