Zain Secures Victory in $4.5 Billion Lawsuit
Published on: 12th Jul 2014
Note -- this news article is more than a year old.
Zain's Iraqi subsidiary says that a mysterious USD4.5 billion lawsuit against the company has been dismissed by the local courts.
Back in April, Zain said that it was issued the USD4.5 billion lawsuit that stemmed from its 2007 acquisition of an Iraqi mobile network operator in 2007.
In a statement, Zain confirmed that it had received the lawsuit last August from an unnamed company who alleges that Zain's purchase of Iraqna in 2007 blocked its own rival offer.
Back in 2007, Zain bought Iraqna for USD1.2 billion from Orascom Telecom after it lost out in the auction to renew its mobile license.
Zain has been providing mobile telephony in Iraq since December 2003 (previously under the name of mtc-atheer). In August 2007, the company acquired a 15-year nationwide licence for USD1.25 billion, shortly thereafter followed by the acquisition of Iraqna.
On January 5, 2008 Zain Group merged Atheer with Iraqna under the new brand name Zain.
As a consequence of the lawsuit, an Iraqi court ruled that that revenues from the Iraqna part of the merged company had to be be put into a holding account and not released pending the outcome of the lawsuit.
As the lawsuit has now been dismissed, Zain confirmed that it can now apply to have those revenues released by the court.
The litigant, who is still unnamed has two weeks to appeal though.