Oi, Cape Verde government strive to resolve management dispute

Mergers, Acquisitions and Financial Results

Representatives from Brazilian telco Oi and the Cape Verde government are reportedly working together to end a boardroom dispute – relating to the management of Cabo Verde Telecom (CVT) –that has rumbled for the last ten months. In December 2014 the administration on Cape Verde indicated that it was ending its partnership with management firm PT Ventures (in place for over 20 years) as the previously-Portuguese management firm had ‘violated’ agreements by agreeing to sell shares held in CVT (to Oi) without the prior permission of the Cape Verde authorities.

Cape Verde-based newspaper A Semana has now reported that the government, through a committee set up by the Ministry of Infrastructure and Maritime Economy, and Oi, are negotiating to reach an out-of-court settlement relating to the lapsed partnership. If the two sides are able to reach an agreement, it is understood that the Brazilian company will suspend its complaint, as presented to the International Centre for Settlement of Investment Disputes (ICSID), a World Bank agency.

Source: Telegeography 21 October 2015