Home / Econet claims right of first refusal over V-Mobile shares

Econet claims right of first refusal over V-Mobile shares

Econet insists that it has the right of first refusal over the offer made by Celtel, and Econet is set to outline its position only after it has studied the offer document as submitted by Celtel.

A team of legal, financial and technical experts has been sent to Nigerian mobile operator V-Mobile to commence due diligence, according to Econet Wireless International. The Johannesburg-based company, which is a 5% equity stakeholder in V-Mobile, earlier this week confirmed that documents had been delivered to Econet Wireless offices by the company secretary of V-Mobile detailing the US$1.05 billion conditional offer received for a 65% stake in V-Mobile by Celtel International, which is owned by MTC Group of Kuwait.

“We have received the offer made by MTC to buy shares in V-Mobile, and we are currently studying it. We will need to establish its validity first before we decide on the way forward,” Econet Wireless spokesman Sure Kamhunga said in a statement.

Econet insists that it has the right of first refusal over the offer made by Celtel, and Kamhunga says his company is set to outline its position only after it has studied the offer document as submitted by Celtel.

In 2003, Econet successfully scuppered an effort by South African operator Vodacom to gain a controlling stake in V-Mobile on the basis that it had not been offered its pre-emptive rights to the shares.

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