Bharti Airtel faces having to pay $3.1 billion in compensation after losing a court battle with Econet Wireless over subsidiary Airtel Nigeria.
A Nigerian appeal court has again sided with Econet Wireless in a legal battle over Econet's former 5% stake in Airtel Nigeria, the Financial Expressreported.
The court upheld lower court findings that Airtel's acquisition of a 65% stake in its Nigerian unit should be declared null and void because Econet Wireless was not consulted or given right of first refusal over the transaction.
In 2012, courts ruled that Econet's stake should be restored, the rights to name the Nigerian unit should revert back to Econet and that any decision made under the consultation of shareholders without Econet's participation should be rendered void.
Airtel took the case to the appeals court, and following the latest negative verdict plans to appeal to Nigeria's Supreme Court.
Econet Wireless is also seeking $3.1 billion in damages from the case, but the appeals court verdict did not address potential damages figures.