Mobile phone company, Millicom International Cellular S.A., is to pay nearly FCFA 53 billion (US$103 million) to the Government of Senegal for its Senegal subsidiary’s licence to be validated.
According to a statement issued on Wednesday by the Senegalese Ministry of Economy and Finance, the government of Senegal and Millicom reached an agreement “in principle” to settle amicably their dispute over the validity of the Sentel/Tigo licence in Senegal.
It said the agreement was reached “in a transparent manner” stressing that the dispute between the two parties dates back to nearly 10 years.
“This agreement provides for recognition of the validity of the current Senegalese subsidiary Sentel/Tigo licence, some additional spectrum, a 10-year extension of its current licence until 2028 and alignment of the terms thereof with those of other operators,” the statement said.
The agreement shall suspend the arbitration proceedings initiated with the Arbitration Centre of the World Bank (ICSID) in 2008 to finalize the documentation needed to bring the transaction to a close.
The money will be paid in several installments, according to a schedule contained in the final document to be signed between the two parties