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Court rejects LAP GreenN appeal for Zamtel
13 April 2012
Libya’s LAP GreenN loses bid for interim relief of its 75% stake in Zambian operator Zamtel
The Zambian high court has rejected an application by the Libyan Investment Authority’s telecommunications unit Lap Green Networks for the restoration of its stake in Zambian fixed-line operator Zamtel.
Zambia’s previous government sold a majority stake in Zamtel in 2010 for $257 million to LAP GreenN, during Muammar Gaddafi’s rule over Libya. However, an enquiry by the successor government held that the stake was sold fraudulently, and so the deal was nullified and reversed. The government seized control of Zamtel in January 2012.
LAP GreenN is suing the Zambian government over its seizure of the 75% stake in Zamtel, demanding compensation of $480 million. This compensation claim is yet to be heard, so Lusaka high court judge Albert Wood has dismissed the application for interim relief of LAP GreenN’s stake.
However, the Zambian high court did not agree with LAP GreenN’s claims that since the stake sale reversal was disputable, there needs to be an interim measure of protection.
The application was aimed at preventing the Zambian government from interfering with the 75% stake in an adverse or prejudicial manner.
Wood believes that if the other court rules in favour of LAP GreenN, the damages provided to the company would provide enough relief, thereby rejecting the need for interim relief.
A spokewoman for LAP GreenN commented: "LAP GreenN’s application to have its stake restored to it has not yet been heard. The Petition on this, filed by LAP GreenN, will be heard on July 9." GTB
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