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.

Investment

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

Story

Connecting Africa Podcast: S2 Ep. 4 – Agri-fintech, from kibbutz to Kenya

The Connecting Africa Podcast team speak to Israeli-Kenyan startup Avenews' co-founder and CEO, Shalom Ben-Or, about his fintech super-app that has been built specifically for Africa's agriculture industry.

Story

Hot startup of the month: Cloud-native developer Deimos

This month's hot startup is pan-African cloud technology and professional services company Deimos which is on a mission to be the leading cloud-native technology company in Africa.

More Innovation hub

Flash poll

All polls

Partner perspectives

All Partner Perspectives

Africa Tech Perspectives

Story

Women in Tech: Spotlight on inclusivity with Digital Council Africa's Juanita Clark

Digital Council Africa founder and CEO, Juanita Clark, talks to Connecting Africa as part of our Women's Month series about her career and what needs to be done to make the tech industry intentionally inclusive.

Story

Women in Tech: Spotlight on legal tech with Life.file's Sinal Govender

Life.file co-founder, Sinal Govender, talks to Connecting Africa as part of our Women's Month series about her career and how we can encourage more young girls to enter the legal tech field.

Story

Digital inclusion as a catalyst for economic empowerment: Mastercard's Imelda Ngunzu

Mastercard's Imelda Ngunzu talks to Connecting Africa about how digital payment solutions and mobile money are transforming the lives of small business owners, women and marginalized groups in East Africa.

More AfricaCom perspectives

Latest video

More videos

Industry announcements

More Industry announcements

Guest Perspectives

Story

Omdia View: July 2022

By Omdia Analysts

Kenya and Zambia move towards 5G with new spectrum allocations while Tunisie Telecom plans to shut down its 3G network - that and more in this month's Omdia View.

Story

Omdia View: June 2022

By Omdia Analysts

5G was the major news trend across Africa in June, as Orange became the first operator to launch 5G in Réunion and operators in Senegal accelerated their 5G plans despite spectrum delays.

More Guest Perspectives

Sponsored video

More videos

Like us on Facebook

Newsletter Sign Up


Sign Up