Jane Mutasa's application hearing deferred

HARARE - Hearing of Jane Mutasa’s application seeking to stop the Empowerment Corporation (Private) Limited (EC)’s February 20 extra-ordinary general meeting (EGM) has been deferred to today.

The EGM seeks to ratify the sale of EC’s 40 percent stake in Telecel Zimbabwe (Private) Limited (Telecel).

Mutasa’s lawyer Charles Chinyama said yesterday: “I requested for a postponement because I was served with the notice of opposition late.”

He said he wanted time to go through the papers.

Mutasa’s application came as squabbling and infighting has intensified among the founding empowerment shareholders of the Telecel International (TI) subsidiary, with flamboyant businessman Philip Chiyangwa claiming that he was still part of the mobile venture.

In court papers, Mutasa’s Indigenous Business Women Organisation (IBWO), Magamba Echimurenga (Magamba) and Selpon Investments (Selpon) have not only sought to block the disposal of 80 million shares held by EC, but sought to interdict Patrick Zhuwao, James Makamba’s Kestrel Corporation (Private) Limited (Kestrel), among other key stakeholders, and Brainworks Capital Management (Private) Limited (BCM) from conducting the EGM.

The parties say they would suffer irreparable damage if the proposed $20 million transaction goes ahead, as it was called by unauthorised persons.

“The... applicants stand to lose all their lifetime investment they had made in Telecel Zimbabwe (Private) Limited through the 6th respondent as their investment vehicle which has ever increasing value well in excess of $200 million and is sought to be donated or to be given away for as little as $20 million,” Mutasa’s group said.

In another supporting affidavit, Magamba’s Andrew Ndlovu said the war veterans’ group had not only fully paid for its shares, but also stands to lose if the share disposal went ahead.

“These shares have been sold or about to be sold through the unlawful acts of the 1st (Zhuwao) and 2nd (IBWO) respondents who purport to have sold these shares to Brainworks Capital Management (Private) Limited. I submit further that 4th (Magamba Echimurenga) applicant’s shares were also stolen by the 3rd (Makamba) and 4th (Kestrel) respondents using the medium of the 2nd (Carlton) respondent…,” he said.

While the parties have always wrangled since Telecel was given a licence in 1998, information obtained by the Daily News late last year indicated that only three out of the seven founding shareholders had managed to pay for their commitment fees and these were Makamba’s Kestrel, the Affirmative Action Group and small scale miners.

 

Comments (1)

For a tech company having so much noises about shareholder wars the future hangs in the balance as EBITDA figures remain porous and just wonder declare pre and after tax earnings plus high capital and recurent budgets and capital expansions, tech transfers, proper business ops and transparencies as the US$137,5 million 20yr licence remains a political one. Welcome aboard AirZim (UM-Telecel Zim.) into the real world of flying as the tech partners might be ESSA coaleagues, tongai tione maifunga kuti kana minda matora maama commercial farmers, cry my beloved Zimbos.

LTMMMMMayhem - 13 February 2015

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