Uganda: Broker Sues Airtel Over Shs13.5 Billion Commission

9 February 2018

Mergers, Acquisitions and Financial Results

Kampala — Telecommunication firm, Bharti Airtel Limited has been sued for allegedly failing to pay commission worth more than Shs13.5 billion to a businessman who brokered the sale of Warid Telecom to Airtel.

In the case before the Commercial Court, Mr Wissam K. Fawaz contends that $3,729,423.98 (Shs13,528,858,433.48) is 2 percent of $186,471,199 (Shs676,442,921,492.40), the value of Warid telecom's assets in Uganda that were acquired by Bharti Airtel Limited.

Through his lawyers, Mr Fawaz is also claiming for the interests at a rate of 10 percent per year from May 2013 till full payment, general damages and legal costs incurred.

It is alleged that in October 13, 2009, the chairman of Bharti Airtel Limited, Sunil Mittal communicated to His Highness Sheikh Nahayan Mabarak Al Nahayan, the chairman of Abu Dhabi Group regarding Warid's Investments in Uganda and Congo Brazzaville where Mr Fawaz desired.

Mr Fawaz contends that he was responsible for coordinating the visit of Mr Mittal to Sheikh Nahayan and that on October 14, 2009, the corporation's director and in charge of Group Mergers, acquisitions and business development at Bharti Airtel Limited, Shaun Parmar engaged his services in the acquisition of Warid telecoms assets and operations in Uganda.

"As per the engagement letter, Clause 1 did set out the role of the plaintiff, that is to advise and assist Bharti Airtel Limited on the approach to the closure of the transaction as well as other related matters as Bharti Airtel Limited would require from time to time regarding the acquisition of Warid telecom's assets in Uganda," reads the court documents in part. Read the full article on The Monitor here