Court blocks Orange ownership shift

30 Sep 2014

A Kampala court has halted the transfer of a majority stake in Orange Uganda until a dispute over employee benefits has been resolved, the Daily Monitor reports. The court issued an injunction restraining the transfer of a 95.3% stake from Atlas Services to Africell Holding at the request of more than 400 Orange Uganda employees. Under the order, the transaction may not take place until Orange resolves a dispute over retirement benefits for employees. Orange’s representative, David Mpanga, asked the court to disregard the application for lack of merit on the basis that the transaction they sought to block was between two separate parties who are independent of the case. However, Justice Mugambe held that there were questions to be determined by court since the two parties had signed contracts inherited by Orange when it had taken over from HiTs Telecom.

Uganda, Africell Holding, Africell Uganda