\tBharti Airtel agreed to pay the Tanzanian government TZS60 billion ($26.1 million) and write-off a $407 million debt as part of a package of measures to resolve a bitter ownership dispute, Bloomberg reported.<\/p>\n
The cash payment to the government will be made in monthly installments spread over five years, the company said at a press conference in Tanzania. Airtel added it would pay a \u201cspecial dividend\u201d of an undisclosed sum to authorities later this year.<\/p>\n
Other measures to settle the row include a $1 million donation to development projects in the country and the appointment of Tanzanian nationals to the local operation’s board.<\/p>\n
Airtel previously agreed to sell a 9 per cent stake in the unit [1] to the government, adding to its existing minority share. Following the move, the operator\u2019s majority share reduced to 51 per cent.<\/p>\n
The latest concessions apparently end a long-running dispute over ownership of the unit, which flared-up when authorities threatened to take the whole operation into government ownership [2] at the start of 2018.<\/p>\n
Airtel and Tanzania have been sporadically at loggerheads since, with the country raising objections [3] when news emerged of plans for an IPO of Airtel Africa [4].<\/p>\n
Throughout the row Airtel maintained its ownership of a majority stake was completely legal. Tanzania\u2019s claim on the asset was the result of issues predating the company’s purchase of the operation, it argued.<\/p>\n[1] https:\/\/www.mobileworldlive.com\/featured-content\/top-three\/bharti-airtel-offloads-tanzania-unit-stake\/
\n[2] https:\/\/www.mobileworldlive.com\/featured-content\/top-three\/tanzania-stakes-claim-for-airtel-unit-after-illegal-sale\/
\n[3] https:\/\/www.mobileworldlive.com\/featured-content\/top-three\/airtel-africa-ipo-facing-opposition\/
\n[4] https:\/\/www.mobileworldlive.com\/featured-content\/top-three\/airtel-presses-on-with-africa-ipo-plan\/<\/p>\n","protected":false},"excerpt":{"rendered":"
Bharti Airtel agreed to pay the Tanzanian government TZS60 billion ($26.1 million) and write-off a …<\/p>\n
The post Bharti Airtel settles Tanzania ownership row<\/a> appeared first on Mobile World Live<\/a>.<\/p>\n