25 Jan 2005

Econet suing PNG government for millions over its failed attempt to buy PNG Telikom.

4:45 pm on 25 January 2005

A report from Papua New Guinea says the African consortium Econet is suing the government for more than 5-hundred million U.S. dollars after it was turned down as a buyer for Telikom PNG.

The National newspaper reports that Econet has confirmed that it had begun legal proceedings in the Port Moresby National Court last Friday for breach of contract on the deal that was abandoned by the government in December.

Econet says the 5-hundred and 24 million dollars it's asking for, is its calculation of the enterprise value of the Telikom transaction to Econet over a period of 20 years, taken at today's value.

The Prime Minister's media unit says if the cabinet hadn't entered into a contract, then the government of PNG couldn't be held accountable.

Econet had been selected by the Independent Public Business Corporation to buy Telikom-PNG.

The cabinet then abandoned the sale.