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.

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

Tags: Active, Cris Fuentes, ZTE, ZTE Mzanzi

Free Email Newsletter:
Subscribe

Shutterstock is the image partner of MyBroadband – technology images can be found here

Join the conversation

Connect with MyBB

twitterfacebookandroidappleblackberrynewsletterfeed

Poll

Have you ever lied on your CV?

View Results

Loading ... Loading ...

More News

Eskom gets new CEO

Eskom power lines

Eskom has a new chief executive officer in the form of Tshediso Matona, the current director general of Public Enterprises

Paying for unpredictable in-flight Wi-Fi is fine: ASA

Mango logo

Advertising and accepting payment online for in-flight Wi-Fi you might not be able to use is fine, the ASA has said

Acer reveals UHD 32-inch monitors

Acer

Acer announced the availability of its new line of 4K2K and WQHD monitors in a press release today, 20 August 2014

Takelot.com redesigns mobile site

Takealot logo

Online retailer Takealot.com has redesigned its mobile site to make it easier to navigate on smartphones, as the group turns its attention to the growing mobile e-commerce market.

Free MyBroadband Newsletter:
Subscribe
X
bool(true)