Dakar, Senegal, November 10, 2017 – Wari Group, a Senegalese financial services company has dragged Millicom International Cellular (MIC), operators of Tigo to the International Court of Arbitration of the International Chamber of Commerce in Paris, France.
On 3rd November, 2017, Wari filed two requests for arbitration with the International Court of Arbitration of the International Chamber of Commerce in Paris against the Millicom group on the one hand, and Xavier Niel’s NJJ Capital and Hassan Hiridjee’s Sofima Ltee on the other hand, in connection with the Millicom group’s sale of Tigo to Wari.
In the interests of transparency towards the Senegalese people regarding this matter, and while Millicom continues to spread approximations and false statements through press releases, Wari clarifies the following:
On 2 June 2017, several meetings were held in Paris between Wari and Millicom. During these sessions, Millicom expressed its desire to “support” Wari in its search for financing and to “continue the transaction”.
From that date, Tigo Senegal underwent a due diligence process (review of its internal documents) at the request of an international bank that was ready to support Wari financially. As part of this due diligence process, Wari retained world telephone market leader Vodafone for an independent opinion.
On 26 July, a due diligence closing meeting took place at Wari’s offices in Dakar, in the presence of Tigo’s general management. During this meeting, it was confirmed that the financing had been finalized and that the bank could proceed with the payment.
However, on Friday 28 July, Millicom notified the termination of the Tigo purchase agreement by email to Wari, and publicly announced it through a press release on Monday July 31, stating that it had concluded an agreement aiming to sell Tigo to a consortium composed of NJJ Capital and Sofima Ltee, instead of Wari. As for the arrival of Teyliom (Yérim Sow) within the consortium, this constitutes, in Wari’s opinion, a purely strategic move to pass off the consortium as actively including a Senegalese entity.
On 6 November, Millicom announced, through a press release, that it had filed a request for arbitration against Wari.
According to Wari, Millicom has not validly terminated the Tigo purchase agreement signed on 2 February 2017. In addition, Wari believes that facts set out in the present press release demonstrate Millicom’s bad faith, in that they appear to have resorted to improper collusion with the consortium, which was Wari’s unsuccessful competitor during the tender process operated by Millicom at the end of 2016, to oust Wari.
Wari deplores this situation, which penalizes Tigo’s employees and its development, along with that of the Senegalese economy. Wari indicates, in particular, that it signed a strategic partnership agreement with Vodafone, the third mobile network operator in the world in terms of subscribers (289 million clients in 76 countries), which would generate significant benefits for Senegal in terms of innovation and employment.
Wari adds that the acquisition of a mobile phone operator, in Senegal or anywhere else, cannot be carried out without authorization from the authorities in charge of granting licenses and regulating the sector. On 1 August 2017, through presidential decree, the Senegalese authorities approved the assignment of Tigo’s telephone operating license to Wari.
This decision has never been challenged. International groups, whoever they are, can no longer behave as if they were on conquered land in Africa.
Neither the authorities, nor public opinion will tolerate it.
Wari denounced with the utmost vigour Millicom’s accusations that it has communicated “false and untruthful information”, a statement from Wari said.
African Eye Report
