Vodacom and the minority shareholder in its subsidiary in the Democratic Republic of Congo (DRC), Congolese Wireless Network (CWN), have agreed to appoint NM Rothschild & Sons to explore options for Vodacom Congo.
Vodacom and CWN have been involved in a rancorous dispute for at least the past 18 months, resulting in the two parties going through an international arbitration process.
But it now appears the two sides are going to try to find alternative ways of settling their long-standing dispute. CWN has accused Vodacom of unlawfully repatriating profits from Vodacom Congo instead of reinvesting the funds in the DRC.
In July, Vodacom Group CEO Pieter Uys promised Vodacom would make a decision about what to do with the troubled Congolese business before the end of 2010.
TechCentral broke the news in January that relations between Vodacom and CWN had come unstuck. Vodacom owns 51% of Vodacom Congo, with CWN holding the remaining 49%.
Fractured relations between Vodacom and CWN have been threatening the joint venture for years. Earlier this year, Vodacom instituted arbitration proceedings under International Chamber of Commerce rules.
Uys has warned previously that if it can’t resolve the protracted dispute, Vodacom could pull out of the DRC. — Duncan McLeod, TechCentral
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