Blue Label arbitration postponed

Blue Label Telecoms, a JSE-listed telecoms group and distributor of prepaid secure electronic tokens, says that its $481 million (R4.18 billion) arbitration with Telkom‘s former Nigerian subsidiary, Multi-Links, has been postponed.

It follows the cancellation of a 10-year contract between the two companies by Multi-Links in 2010, which led Blue Label to announce the termination of its business ventures in Nigeria, of which the Multi-Links contract was a significant contributor.

Blue Label started proceeding to claim $481 million in lost profits from the Nigerian operation.

Blue Label, which owns 36.72% in Africa Prepaid Services Nigeria through its 72% stake in African Prepaid Services, noted that an agreement between the companies was cancelled by Multi-Links after Telkom announced plans to exit the CDMA business in Nigeria.

Telkom subsequently sold off Multi-Links in 2011 for as little as $10 million, having incurred billions in losses over the period of ownership.

The arbitration was set down for hearing from 4 November until 15 December 2012.

“The arbitration was postponed as a result of an amendment introduced by Multi-links on the eve of the commencement of the arbitration,” Blue Label’s Michael Campbell told BusinessTech.

“Dates for the continuation of the arbitration are currently under discussion between the parties and the arbitration tribunal,” he said.

Multi-Links lodged a counter-claim for $123 million citing a number of contractual breaches by APSN.

More on Blue Label

Blue Label forks out $6.1m for Mexican subsidiary

Blue Label ups profit, lifts dividend

Blue Label ups profit, lifts dividend

Must Read

Partner Content

Show comments

Trending Now

Follow Us

Blue Label arbitration postponed