By John Lee.
Kuwait's Zain Group has announced that an Iraqi court has lifted a freeze on future revenue of Zain Iraq.
But the company added that previously frozen revenues remain blocked, after a $4.5 billion lawsuit against the Iraqi firm was dismissed this month.
In April, we reported that Zain was being sued for $4.5 billion over its 2007 acquisition of Iraqi telecom operator Iraqna for $1.2 billion from Egypt’s Orascom Telecom.
The company issued the following statement:
Zain Group advises that it has notified the Kuwait Capital Markets Authority (CMA) of the following:
In regard to the announcement made by Zain Group to the CMA on April 20, 2014 of lawsuits filed against Atheer Telecom (“Zain Iraq”) in Iraq by another telecommunication company operating in Iraq, Zain Group wishes to further advise the following:
- Regarding the first lawsuit, claim No. 1312 / B / 2013, the Court of First Instance in Iraq issued a judgment in the case on July 9, 2014 dismissing the case of the plaintiff company against both the Communications and Media Commission of Iraq (CMC) and Zain Iraq. It should be noted that this judgment is subject to appeal within fifteen days from the date of judgment.
- Regarding the second lawsuit, which pertains to the blocking of a certain amount of funds generated by Zain Iraq that are required to be held by a court-appointed legal administrator in an Iraqi Bank, as a consequence of the dismissal of claim No. 1312 / B / 2013 and the fact that there is no longer a legal justification for the blocking of such funds, Zain Iraq applied to have these restrictions removed. In a decision issued on Sunday, July 13, 2014, the court decided to suspend all activities of the administrator and to cease blocking any future funds until the claim in case No. 1312/B/2013 becomes final and not subject to appeal.
Zain Group remains committed to providing all stakeholders with further updates on any activities related to these lawsuits as they occur.
(Picture: Zain Group CEO, Scott Gegenheimer)