Financial Advisory
Freshfields
Full Credential Description
Econet Wireless, a South Africa-based telecom provider, faced a significant legal challenge regarding its 5 percent stake in Vee Network Limited (VNL), Nigerias leading mobile company. The dispute arose when VNL decided to sell a majority stake to Dutch company Celtel, bypassing Econets pre-emption rights as outlined in the shareholders agreement. This led Econet to seek legal recourse to protect its interests and secure what it viewed as a critical asset for its African portfolio. Over the course of eight years, Freshfields worked diligently to represent Econet in an international arbitration process. The case was fraught with complications, including jurisdictional objections, anti-arbitration injunctions, and attempts to move assets. The legal team faced additional hurdles, such as the unexpected death of Econets expert valuation witness just three weeks before the hearing. The arbitration process involved two main hearings in Lagos, separated by two years, with the second hearing featuring testimony from 11 witnesses and experts, culminating in closing submissions that spanned nearly 800 pages. Despite these challenges, Freshfields successfully secured a final arbitral award that included a nine-figure damages payout for Econet, along with costs and interest. The case not only resulted in substantial financial compensation but also reinforced the independence of Nigerias legal system, garnering attention from the international business community. This lengthy and complex arbitration process exemplified the resolve, spirit, and skill of the legal team in navigating a multifaceted dispute in the telecommunications sector.