| Ghana: Telekom Malaysia settles dispute |
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| Monday, 09 May 2005 | |
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Telekom Malaysia says it has agreed to settle an arbitration claim against the government of Ghana to force the government to buy back Telekom’s share of Ghana Telecommunications.
Telekom Malaysia, which has been selling its stakes in overseas firms to focus on markets closer to home, had filed an international arbitration claim seeking to force Ghana’s government to buy back its 30% stake and pay Telekom US$ 124 million. Telekom attempted to sell its stake in Ghana's biggest telecoms operator back to the Ghanaian government after its management contract ended. Telekom paid US$ 38 million for the stake in 1997. The company’s claim was filed with the arbitration court in The Hague in October 2004 and is expected to be resolved in July. In 2004, Telekom Malaysia said that Ghana’s government agreed to pay it US$ 50 million as part of a wider dispute over investments in the country. Telekom told the stock exchange that upon full payment of the settlement sum over a two-year period, its stake in Ghana Telecommunications would revert to the government. Source: Reuters |