07 October 2010
ABU DHABI: An Arbitral Tribunal of the International Chamber of Commerce (ICC) in Paris rendered a final award in the dispute between Emirates Telecommunications Corporation (“Etisalat”) and Planor Afrique (“Planor”) relating to Etisalat’s Burkina Faso subsidiary, Telecel Faso.
The Arbitral Tribunal upheld Etisalat’s claims that the Memorandum of Agreement (“MOA”) entered into by Etisalat and Planor in September 2007 to settle their dispute regarding Telecel Faso was valid, binding and enforceable and that Planor had breached the MOA.
The Arbitral Tribunal also ordered Planor to take the necessary steps to close the transaction contemplated by the MOA within 60 days as from the notification of the award, on penalty of a 10,000 euros ($13,849) per day in the way of non-compliance fine as from the 61st day. In addition, the Arbitral Tribunal also awarded Etisalat monetary damages for the losses arising from breach of the MOA.
The MOA was signed by Etisalat (as a substantial stakeholder in Atlantique Telelcom) and Planor in September 2007 to provide a global settlement of the dispute relating to Telecel Faso (in which Planor Afrique was the minority shareholder).
The MOA stipulates that Atlantique Telecom will own a 68 percent stake in Telecel Faso and that Planor Afrique will own a 32 percent stake.
The MOA also provides for the definitive withdrawal of all pending claims between Planor Afrique and Atlantique Telecom relating to Telecel Faso.
Ahmad Bin Ali, group senior vice president, Corporate Communications of Etisalat Group, said: “Etisalat notes with satisfaction that the ICC Tribunal has confirmed the binding nature of the settlement agreement reached with Planor Afrique.
Etisalat intends to proceed quickly with the implementation of the MOA, so as to facilitate the Group’s plans for significant contributions to the advancement of the telecommunications sector in Burkina Faso.
“We would like to take this opportunity to assure our customers in Burkina Faso that we will introduce world-class value added services to this fast growing nation,” Bin Ali said. – The Daily Star
Copyright The Daily Star 2010.
