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

Forum discussion

Shutterstock is the image partner of MyBroadband – more technology images

Join the conversation

Connect with Us

androidappletwitterfacebookgoogleplusfeednewsletter

Poll

Have you used WhatsApp voice calling yet?

View Results

Loading ... Loading ...

More News

MyBroadband launches DStv competitor

MyBroadband TV decoder with smartcard

MyBroadband has partnered with international content providers to launch MyBroadband TV – a DStv competitor offering over 100 channels for only R99 per month

Goodbye Sapa, thank you for the news

Sapa

After almost 77 years of providing constant news coverage, the SA Press Association is turning off the lights.

Microsoft Surface 3 announced

Surface 3

Microsoft has announced an addition to its Surface line of tablet PCs

IT salary survey launched

MyBroadband Header

MyBroadband has launched its latest salary survey, aimed at informing South African IT professionals what their peers are really earning

X

Newsletter Subscription


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


Free MyBroadband Newsletter
Subscribe
X
bool(true)