One of the largest leading international service provider in the market is taking the lead to sue a mobile operator in West Africa that belongs to a well-known telecom group. The legal action was a result of an agreement breach from the mobile operator’s side after a long-term successful partnership between both entities.
Based on our investigation, the Group head office is intending to keep all the collection of funds centralized through bank accounts in MENA region instead of receiving them to each MNO where they are taxed and monitored by the regulator.
This mobile operator happens to have multiple legal cases and has also been charged before for transferring funds outside its home country, the reason why this case might harshly impact this mobile operator’s stock market rate.
It has been confirmed that this international service provider has put all the effort to close this case without referring to legal institutions. It tried partnering with the Group to keep business running and avoid going to court after the contract breach. Yet, there was no cooperation from the other party which alludes to the fact that the Group might have been lobbied by parties who are against this international service provider, thus refusing to cooperate with it in any possible way.
While the international service provider is focusing on the agreement breach, based on our personal analysis to the situation, we think that such issue, if proven true, will cause other mobile operators belonging to the same group to have frictions with the regulators within their countries as extra audit and checks will be run on all their exchanged funds. Such action will negatively affect their bonds in the stock exchange, existing board members, and investors’ allocation of funds.
Also, the stock market will surely be negatively provoked as well as their investors. Hence, this might cause a huge damage that the operator is well off without.
This case will surely be of a great interest to the media, as both companies are well known in the telecommunication markets and the media is always eager to cover such topics.
Updated details and further information will be shared once the legal case is put into action, so stay tuned.