Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.


Wari, Tigo Lock Horns Over Cancelled Senegal Deal

Article Image
The decision by international telecom operator Millicom to terminate an agreement to sell its Tigo Senegal operation to Wari Group for $129 million prompted both companies to accuse the other of making false statements about the sales process.

On Monday, Millicom International Cellular SA (Nasdaq: MICC) told Connecting Africa that Senegalese money transfer firm Wari had failed to secure financing needed for the deal but that a rival offer from a consortium -- involving Xavier Niel's private holding company, NJJ Capital, Sofima (a telecom investment vehicle managed by the Axian Group) and investment holding group Teylion -- would allow it to proceed with the sale. (See Millicom Signs New Sales Deal for Tigo Senegal.)

"Wari has not provided the financing required for the deal, thereby not meeting the terms of the Sales and Purchase Agreement (SPA) further to which we are exercising our right to terminate the transaction," said a spokesperson for Millicom in comments emailed to Connecting Africa. "The telecom consortium approached us with an alternative offer that provides continuity to the transition process started back in February this year."

Wari has since disputed the claim that it had not met the financing requirements, saying in a statement that it had fulfilled all its commitments in connection with the acquisition, "paying the initial deposit of $10 million and conducting a nine-month due diligence process," although the statement also suggested that the company believed it had until September 30 to make this payment with the full balance due by November 2 at the latest.

"Wari stresses that this announcement is strongly denounced by the highest authorities in Senegal and that it will be the subject of legal proceedings if Millicom persists in its unilateral decision," the company added.

Tigo Senegal immediately followed up with its own statement, saying that no money had been received as yet from Wari and pointing out that the deposit had been due by June 2 under the terms of the agreement.

"In the event of non-compliance by Wari with this financing obligation, the sale agreement grants Millicom the right to terminate the transaction immediately upon simple notification. As of July 28, 2017, almost two months after the cut-off date and six months after the signing of the sales agreement, Wari had still not provided the required financing," Tigo said.

The company added: "Tigo Senegal also wishes to point out that the declarations referring to an ongoing due diligence process are also erroneous, since the sale agreement is in no way conditioned by a due diligence process. The decision to terminate the sale agreement was taken solely in the interests of Tigo Senegal and the Senegalese."

Millicom would not disclose details of the price that the consortium has agreed to pay for Tigo Senegal.

The Millicom group has operations across Africa and Latin America, with the core of its business focused on the latter. In Africa, specifically, Tigo operates in Ghana, Tanzania, Rwanda and Chad and, until recently, was active in Senegal.

Besides the deal to sell its operations in Senegal, it is also been looking to offload its stake in Helios Towers Africa and has agreed to combine its operations in Ghana with those of Airtel. Once that deal has received regulatory approval, each company will have equal ownership in the resulting joint venture.

Anne Morris, contributing editor, special to Connecting Africa

Innovation hub


Botswana prohibits Starlink, imposes penalties for lawbreakers

The Botswana Communications Regulatory Authority (BOCRA) has warned the public against the importation, use and resale of SpaceX's satellite Internet service Starlink's devices in the country.


Founders Factory Africa: Partnerships are key to building successful startups

Founders Factory Africa's Ayotunde Aladejana and Wangui Kahumbi spoke to Connecting Africa in an exclusive interview about the importance of building bridges between startups and corporations and fostering collaboration in the African tech ecosystem.

More Innovation hub

Latest video

More videos

Upcoming events

Africa Tech Festival 2024
November 11-14, 2024
Cape Town, South Africa
More Upcoming events

Sponsored video

More videos

Industry announcements

More Industry announcements

Africa Tech Perspectives


Uber's Marjorie Saint-Lot on inclusion and sustainability in Africa

Uber's Country Manager for Ghana and Cote d'Ivoire, Marjorie Saint-Lot, shares how the ride-hailing company is approaching public-private partnerships, environmentally friendly initiatives and gender inclusion in Africa.


The 100 most influential African leaders in 2023

A new report from Africa Tech Festival and Connecting Africa puts a spotlight on the top 100 African leaders in the telecoms and technology sector in 2023.


Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

More Africa Tech perspectives

Partner perspectives

All Partner Perspectives

Guest Perspectives


Omdia View: September 2023

By Omdia Analysts

Highlights in September 2023 in the Middle East and Africa included more 5G spectrum licenses, vendor and operator strategies, and partnerships – that and more in this month's Omdia View.


Omdia View: August 2023

By Omdia Analysts

Highlights in August 2023 in the Middle East and Africa included a commercial 5G launch from Ethio Telecom and the signing of a virtual wheeling agreement between Vodacom South Africa and Eskom – that and more in this month's Omdia View.

More Guest Perspectives

Like us on Facebook

Newsletter Sign Up

Sign Up
Tag id test-002