Mergers, Acquisitions and Financial Results

A high-powered government delegation led by the Minister of Communications and Technology, Albert Kan Dapaah is in Kualar Lumpur, Malaysia to arrange a settlement with Telekom Malaysia in the protracted dispute with Ghana over the Malaysians’ share in Ghana Telekom.

Telekom Malaysia has filed a suit at the International Arbitration Court in the Hague demanding US$300m for the 30 percent share they acquired in 1997 for US$38 million. The Malaysians also claim that they were promised a further 15 percent share for which they paid $50m out of an agreed sum of $100 million. The suit was originally filed at a London Arbitration Court but the Malaysians have transferred the case to The Hague.

Kan-Dapaah’s delegation, according to a ministry source will plead with the Malaysians for an out of court settlement. Should the arbitration fail, then a team of lawyers led by attorneys from the Attorney General’s Department and Ghana Telecom legal brains would fight a legal battle with Telekom Malaysia at The Hague.

Under the agreement under which Telekom Malaysia invested in the state telecommunications company, Ghana has the first option to buy out the Malaysia share. But insiders say the $300 million listed is beyond the Ghanian Government’s means. The case was listed for hearing at The Hague last week.