adminJOHANNESBURG. — Telkom and Blue Label Telecoms have made a breakthrough in resolving their long-running dispute in Nigeria. The two companies were claiming billions of rand from each other following the failure of Multi-Links in the West African country.
Today, the parties to both the arbitration proceedings and the action announced that they had agreed to settle their disputes on the basis that all claims and counter-claims are withdrawn and each party will be responsible for the payment of their own costs.
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, counter-claims and defences.
In June 2011, arbitration proceedings were instituted by Africa Prepaid Services Nigeria Limited (APSN) against Multi-Links Telecommunications Limited under the auspices of the Arbitration Foundation of South Africa.
APSN is a subsidiary of Blue Label Telecoms Limited (“Blue Label”). Multi-Links is a former subsidiary of Tel- kom.
APSN claimed payment of the sum of $457 million against Multi-Links arising out of the termination of the Super Dealer Agreement between Multi-Links and APSN, in relation to the distribution of Multi-Links’ products and services by APSN, in Nigeria.
Telkom chairman Jabu Mabuza and his Blue Label counterpart Larry Nestadt said they were pleased the dispute had been amicably resolved.-— Bloomberg.
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