Wari Group is threatening Millicom with a legal challenge after the Tigo parent company reneged on their agreement for Wari to acquire Tigo Senegal.
Earlier this week Millicom issued a statement that it had found another buyer for its Senegalese unit following separate negotiations, and it was exercising its right to abandon the deal that it reached in February to sell Tigo Senegal to Wari for $129 million.
Millicom claims that Wari has thus far failed to demonstrate adequate financing for the deal. This is disputed by Wari, which claims to have paid an initial deposit on the acquisition as well as sticking to the “agreed timeline” for further instalments. The next payment is due by 30th September.
In a statement, the firm said: “Wari stresses that this announcement is strongly denounced by the highest authorities in Senegal and that it will be the subject of legal proceedings if Milliicom persists in its unilateral decision.”
Millicom, which operates across Latin America and Africa, has not disclosed the amount offered by the new buyer, which is a consortium consisting of investment firms NJJ Capital, Sofima, and Teyliom Group. Tigo Senegal is the market’s number two player after France’s Orange.