ZTE Mzanzi partnership goes up in flames

ZTE is dropping SA’s ZTE Mzanzi as the company’s official partner in South Africa after the two companies failed to resolve a dispute.

By - May 10, 2012
zte-logo

Chinese telecommunications equipment manufacturer ZTE is dropping SA’s ZTE Mzanzi as the company’s official partner in South Africa, after the two companies failed to resolve a dispute.

ZTE Mzansi, a joint venture between China’s ZTE Corp and local black-owned companies, took Telkom to court in March after being disqualified from a bidding process related to Telkom’s infrastructure overhaul project.

ZTE Corp, which owns a minority share in the company, then followed with its own legal battle against its partner to get the interdict overturned, releasing a statement distancing itself from proceedings against the incumbent.

At the time, ZTE South Africa CEO, Cris Fuentes said that the court case had been brought against ZTE Mzansi because it had engaged in litigation against Telkom SA without consulting the group – an action which Feuntes said was “contrary to the agreement” entered into by the partnership.

He told BusinessTech that the company would be “reconsidering” its relationship with Mzanzi, but hoped to “resolve the matter amicably.”

Partnership ended

However, after failing to reach a settlement, ZTE has terminated its partnership with ZTE Mzanzi.

“After several intents to reach an amicable settlement with ZTE mzanzi, ZTE HK, as shareholder of ZTE Mzanzi, has been forced to notify the termination of the agreements entered into with ZTE Mzanzi,” said Cris Fuentes.

“The absence of authorisation from our side to proceed with the Telkom litigation has only been one of the elements which motivated our decision, the main reason being the lack of consultation of ZTE HK, as minority shareholder, in key decisions of the company,” he continued.

The decision to end the partnership has been challenged by ZTE Mzanzi before the Pretoria High Court, which will be heard next week after ZTE Corp files an affidavit tomorrow (10 May 2012).

ZTE Corp is also still considering its options with Telkom, “since this litigation [between Telkom and ZTE Mzanzi] was initiated in violation of our rights, as minority shareholders,” concluded Fuentes.

Related articles

ZTE vs. ZTE Mzanzi on Telkom interdict

Telkom back in court

Share your thoughts

Shutterstock is the image partner of MyBroadband – more technology images

Join the conversation

Connect with Us

androidappletwitterfacebookgoogleplusfeednewsletter

Poll

Do you like Google's new logo?

View Results

Loading ... Loading ...

More News

Uncapped ADSL for R79 per month

Mweb Uncapped

MWEB has launched a new 1Mbps uncapped ADSL data-only account, following Telkom Wholesale’s re-introduction of 1Mbps digital subscriber lines.

Most sought-after tech and telecoms qualifications in South Africa

Business people globe world silhouette

Some of South Africa’s large telecommunications and IT players reveal the most desirable technology and telecommunications skills in the country.

New Google logo revealed

Google logo 3

Search giant Google has unveiled a new logo.

Samsung Gear VR Innovator Edition in South Africa

Samsung Gear VR Innovator Edition 2015 - Galaxy S6, S6 Edge

The Gear VR Innovator Edition is now available in South Africa.

X

Newsletter Subscription


Name
Email *
Enter the following to confirm your subscription *
Captcha image


Free MyBroadband Newsletter
Subscribe
X