Telkom and Blue Label Telecoms have settled a dispute in which the two companies were claiming billions of rand from each other following the failure of Multi-Links in Nigeria.
In separate statements sent to shareholders before markets opened on Wednesday morning, the two firms said they had reached an amicable settlement.
In June 2011, Blue Label subsidiary Africa Prepaid Services Nigeria instituted arbitration proceedings against Multi-Links, which was previously owned by Telkom.
Africa Prepaid Services claimed an amount of US$457m against Multi-Links following the termination of a super dealer agreement between the companies. The agreement was for the distribution of Multi-Links products and services in Nigeria.
Multi-Links then counterclaimed for $123m.
Telkom and Multi-Links obtained a stay of the arbitration proceedings and instituted legal action against Blue Label and the holding company of Africa Prepaid Services Nigeria. It also filed papers against businessman Mthunzi Mdwaba and former Telkom executive Thami Msimango. In total Telkom and Multi-Links sought payment of $724m.
Africa Prepaid Services counterclaimed against Telkom and Multi-Links, seeking $457m.
“Today, the parties to both the arbitration proceedings and the action announced they have agreed to settle their disputes on the basis that all claims and counterclaims are withdrawn and each party will be responsible for the payment of their own costs,” Blue Label said on Wednesday.
“In terms of the settlement, all of the parties have agreed to withdraw all allegations of any wrongdoing which they made against each other in the course of advancing their various claims, counterclaims and defences.”
Telkom confirmed that the litigation, including the action taken against Mdwaba and Msimango, has been settled.
“In terms of the settlement agreement, all claims and counterclaims have been withdrawn and all of the parties have agreed that they will have no further claims against one another arising out of the disputes forming the subject of both the arbitration proceedings and the action, including any claims for costs,” Telkom said. — (c) 2014 NewsCentral Media