Millicom has confirmed it would not be going ahead with the previously announced sale of its Tigo business in Senegal to Wari Group. The sale agreement of US$129 million was announced in February 2017.
The Group has since entered into a new agreement with a consortium consisting of NJJ, Sofima (telecom investment vehicle managed by the Axian Group) and Teyliom Group.
Millicom said it set 2 June 2017 as the deadline for Wari to provide the funds required as part of the transaction. However on 28 July Millicom stated that it had not yet received the financing.
"Millicom therefore decided to exercise its right to terminate the transaction and notified Wari, in accordance with the terms of the sales agreement. The termination of the transaction is consequently compliant with the terms of the sales agreement," the telco stated.
Wari said that it had paid an initial deposit, and was abiding by the agreed timeline for subsequent payments.
The company said the next payment was due on 30 September. It subsequently threatened to seek legal redress "if Millicom persists in its unilateral decision."
In its response to Wari's statement, Millicom said the sales agreement granted Millicom the right to terminate the agreement immediately upon notification in case Wari did not comply with the financing requirements. It also refuted Wari's claim of an ongoing due diligence process.
"No such process was outstanding as part of the SPA. The decision to terminate the sales agreement was taken in Tigo Senegal and the Senegalese consumers' best interest," Millicom stated.
The agreement with the consortium is subject to customary closing conditions and regulatory approvals.