Consortium shenanigans may further delay SNO
September 18, 2005
By Wiseman Khuzwayo
Johannesburg - The shenanigans within the Two Consortium may end up in court and could force a further delay to the second network operator (SNO), which is already two years overdue.
The antics revolve around dubious manoeuvres to acquire further shares in Two Consortium and call into question good governance and the fiduciary duty of a company director.
Two Consortium has an effective 12.5 percent stake in the SNO, the intended fixed-line competitor to Telkom.
Business Report has learnt that a decision by Swedish firm Swedtel to exit its investment in Two Consortium has set the cat among the consortium's black shareholders.
Per-Olof Jansson, Swedtel's director of business in Africa, was this week unable to name the beneficiary of Swedtel's shares in the consortium as he was at a business meeting in Nigeria when contacted by Business Report, but he did confirm its intention to exit the SNO.
Swedtel South Africa owns 51 percent of the shares in the Two Consortium.
Vying for these shares are Isaac Amuah, who owns Omega Scientific Research Holdings; Themba Vilakazi, a director of SRM Telecommunications; and Xoliswa ***ana, a director of ICT Investments.
Amuah also owns Invictus Telecom, which holds 40 percent of the shares in Swedtel SA, while the rest are held by Swedtel. Amuah, Vilakazi and ***ana are fighting over the 40 percent stake.
Vilakazi and ***ana said they would not discuss their interests in the stake as they had to adhere to confidentiality agreements. For more than a week, Amuah has not been available.
Originally Swedtel and Invictus formed a consortium to bid for an SNO stake. Their agreement gave the partners pre-emptive rights should the other party wish to withdraw, and the exiting party would be reimbursed for the costs of the SNO bid.
Amuah is understood to have offered SRM and ICT 33.3 percent each in Invictus. The offer was accepted by Vilakazi and ***ana.
SRM and ICT also hold shares in the Two Consortium.
In February Swedtel SA informed Invictus of its intention to exit the SNO and a sum of over R2.6 million was agreed between Swedtel and Invictus as the costs of the Swedish parent, which wanted to be paid within three days.
Following negotiations, the two agreed on R2.7 million in two instalments over 90 days.
This was eventually whittled down to R2 million.
However, during the course of the negotiations Swedtel informed Amuah that it was in discussions with a third party regarding its shares.
Soon after this, Jansson told Amuah that Swedtel was nominating ***ana as one of two directors of Swedtel SA in terms of the consortium agreement.
This clearly raised a question of conflict of fiduciary duty for ***ana as a director of ICT, Invictus and Swedtel SA.
Business Report understands that Amuah feels strongly that he has been cheated by Swedtel and is contemplating legal action.
http://www.busrep.co.za/index.php?fArticleId=2880464
September 18, 2005
By Wiseman Khuzwayo
Johannesburg - The shenanigans within the Two Consortium may end up in court and could force a further delay to the second network operator (SNO), which is already two years overdue.
The antics revolve around dubious manoeuvres to acquire further shares in Two Consortium and call into question good governance and the fiduciary duty of a company director.
Two Consortium has an effective 12.5 percent stake in the SNO, the intended fixed-line competitor to Telkom.
Business Report has learnt that a decision by Swedish firm Swedtel to exit its investment in Two Consortium has set the cat among the consortium's black shareholders.
Per-Olof Jansson, Swedtel's director of business in Africa, was this week unable to name the beneficiary of Swedtel's shares in the consortium as he was at a business meeting in Nigeria when contacted by Business Report, but he did confirm its intention to exit the SNO.
Swedtel South Africa owns 51 percent of the shares in the Two Consortium.
Vying for these shares are Isaac Amuah, who owns Omega Scientific Research Holdings; Themba Vilakazi, a director of SRM Telecommunications; and Xoliswa ***ana, a director of ICT Investments.
Amuah also owns Invictus Telecom, which holds 40 percent of the shares in Swedtel SA, while the rest are held by Swedtel. Amuah, Vilakazi and ***ana are fighting over the 40 percent stake.
Vilakazi and ***ana said they would not discuss their interests in the stake as they had to adhere to confidentiality agreements. For more than a week, Amuah has not been available.
Originally Swedtel and Invictus formed a consortium to bid for an SNO stake. Their agreement gave the partners pre-emptive rights should the other party wish to withdraw, and the exiting party would be reimbursed for the costs of the SNO bid.
Amuah is understood to have offered SRM and ICT 33.3 percent each in Invictus. The offer was accepted by Vilakazi and ***ana.
SRM and ICT also hold shares in the Two Consortium.
In February Swedtel SA informed Invictus of its intention to exit the SNO and a sum of over R2.6 million was agreed between Swedtel and Invictus as the costs of the Swedish parent, which wanted to be paid within three days.
Following negotiations, the two agreed on R2.7 million in two instalments over 90 days.
This was eventually whittled down to R2 million.
However, during the course of the negotiations Swedtel informed Amuah that it was in discussions with a third party regarding its shares.
Soon after this, Jansson told Amuah that Swedtel was nominating ***ana as one of two directors of Swedtel SA in terms of the consortium agreement.
This clearly raised a question of conflict of fiduciary duty for ***ana as a director of ICT, Invictus and Swedtel SA.
Business Report understands that Amuah feels strongly that he has been cheated by Swedtel and is contemplating legal action.
http://www.busrep.co.za/index.php?fArticleId=2880464
