ANNOUNCEMENT 23 Jan 2012In January 2012, the government of Zambia announced altered domestic business conditions for foreign investors.
NUMBER OF INTERVENTIONS
On January 23, 2012, the Zambian government announced to seize 75 per cent of the shares of the national fixed-line telecommunications company Zamtel owned by the Libyan firm LAP GreenN.
LAP GreenN, the African telecommunications arm of the Libyan Investment Authority, acquired 75 per cent of Zamtel for USD 257 million in 2010. Then the opposition came to power in Zambia and decided to sieze the assets of firms privatised by the former government. The new Zambian authorities claimed that the sale of Zamtel was fraught with irregularities in the tender process and involved the bribing of senior Zambian government officials.
In response, LAP GreenN argued that it 'will consider any and all legal options available, if necessary, whether in Zambia or in other jurisdictions, (...) to recover the company's significant investment in Zamtel'.