Legal tussle looms in P3bn Mascom deal

The pension fund, which holds 40% in Mascom, sought legal advice after its major partner in Mascom, MTN, announced the deal to sell out to Masiyiwa’s Econet Group recently. Econet presently holds a seven percent stake in Mascom, which will increase to 60% should Masiyiwa’s transaction go through.

This week, authoritative sources close to the transaction told Mmegi that the counsel sought by the pension fund had suggested that they (BPOPF) could successfully challenge the deal under clause 12 of the shareholders’ agreement it has with MTN. The clause reportedly requires MTN to have given BPOPF the first offer of the shares being sold before any other party.