LAP GreenN challenge the Zambian Government's action to seize its 75% share in Zamtel

By John Chola Monday 19 March, 2012 - LAP GreenN, the Libyan Investment Authority's international telecommunications arm, has today successfully filed court papers challenging the Zambian Government's action to seize LAP GreenN's 75 per cent share in Zamtel.In a petition filed before the Zambian High Court, LAP GreenN disputes the legality of the Zambian Government's claim that LAP GreenN's shares were taken for 'public purpose'.Wafik Al-Shater, Chairman of LAP GreenN, said: "LAP GreenN is very clear that the seizure of our shareholding in Zamtel by the Zambian Government was illegal and unconstitutional, and to the detriment of both Zamtel and its customers".Al-Shater said that in the 18 months that Zamtel was under LAP GreenN's management, the telecoms firm increased its total subscriber base by 600 per cent - to over one million at the start of 2012 - and significantly increased the company's market share, leading to a 50 per cent increase in revenues. He stated that the growth and prosperity seen in Zamtel was only recorded under LAP Green management.Mr Al-Shater said that through major improvements and upgrades in systems and infrastructure, including a 100 per cent increase in the number of base stantions, LAP GreenN improved network performance and established a far superior service for Zamtel's customers. "LAP GreenN took a bankrupt company and developed it into a strong telecommunications provider able to deliver real value to all shareholders, to serve the Zambian people and to contribute directly to the Zambian economy sustainably into the future."We are compelled to take this course of action as dictated by the procedure set out in Zambian law. Nevertheless, we sincerely hope that reason can prevail, and that LAP GreenN can resume making its important contribution to providing telecommunications services to the Zambian people. However, to recover the company's significant investment in Zamtel, LAP GreenN will consider any and all legal options available, if necessary, whether in Zambia or in other jurisdictions."The petition filed today outlines LAP GreenN's right to financial compensation for the value of the asset at the time of seizure should the shareholding not be restored to it, which is calculated to be US$480 million. In addition, LAP GreenN is claiming for the substantial losses it has suffered as a result of the seizure of the shares.In June 2010 LAP GreenN acquired a 75 per cent stake in Zamtel, the former state-owned Zambian telecommunications company, for US$ 257 million. The Government of Zambia retained a 25 per cent stake in the company.LAP GreenN is the telecommunications investment arm of Libyan African Investment Portfolio (LAP), focusing on the telecommunications sector in emerging markets. It operates mobile and ISP businesses in Uganda, Zambia, Ivory Coast and South Sudan. LAP GreenN is actively seeking to increase its footprint across Africa and the Middle East.ENDS