Dakar, Senegal, October 27, 2017 – Wari Group, a Senegalese financial services company, announced that it has sent to Millicom International Cellular (MIC) an official letter, dated October 18th, 2017, confirming its availability to carry out the full payment of the transaction for the acquisition of the mobile operator, Tigo.
This is in accordance with the sales agreement signed on February 2nd, 2017 which binds the two groups as announced by Millicom’s official press release.
In February this year, Millicom sold its Tigo Senegal unit Wari Group for a fee of USD129 million.
But, having received an order of inadmissibility dated October 25th, 2017 from Millicom, indicating Millicom’s will to sell Tigo to another economic entity, Wari announced that it has filed a suit against Millicom that they will have to respond to on November 13th, 2017.
Wari has fulfilled all commitments related to the acquisition of the second Senegalese mobile operator, by paying the initial deposit in February and by driving and financing the telco since the contractual due diligence planned over a period of nine months (study of Tigo’s commercial, legal, financial and technical aspects).
“Wari also would like to point that the deadline to make the full payment is November 2nd, 2017. Therefore, Millicom cannot rely on the date of June 2, 2017, which was only a transitional step in the mobilization of the funds, to terminate unilaterally and brutally the signed sales contract”, according to a press release copied to African Eye Report.com.
“As part of the due diligence, Wari has requested Vodafone’s (Telco industry leader) consultancy services, for independent advice. Along with its technical and financial partners, Wari therefore confirms its commitment to respect the deadlines and processes on which the sales agreement was concluded”.
Wari denounced once again the attitude of the consortium composed of NJJ Xavier Niel (Free) and Sofima (Axian Group Hassan Hiridjee) who repeatedly tried to prevent this acquisition, it said.
The release added that after signing the agreement in February, the competing consortium proposed to Wari to be the technical partner, but with an offer to Millicom revised downward and only between 5% and 10% of shares attributed to Wari.
Motivated by patriotism, Wari categorically refused this offer. It is unfortunate that Senegalese economic actors can be associated with what Wari considers as a maneuver that goes against Senegalese and African interests.
“Wari would like all parties involved, including Millicom’s shareholders, to be aware of their responsibilities and adds that the acquisition of a mobile operator, in Senegal as elsewhere, cannot be carried out without the approval of the authorities responsible for the licensing and regulation of this sector.
On August 1st, a presidential decree released by the Senegalese authorities approved the transfer of the mobile license operated by Tigo to Wari”.
With Tigo’s acquisition, Wari intends to develop a pan-African group with an international appeal, leader in providing digital solutions”.
African Eye Report
