MUMBAI, Feb 21: Stocks of Bharti Airtel today slipped over 1 per cent in early morning trade after the telcom major lost a court case in Nigeria in which it potentially faces USD 3 billion in payouts.
The nation’s largest mobile-phone operator has lost a court case in Nigeria and potentially faces USD 3 billion in payouts over a 5 per cent stake claimed by Econet Wireless in its Nigerian unit.
Reacting to the development, the shares of Bharti Airtel opened at 297.20, then fell 1.04 per cent to an early low of Rs 293.75 on the BSE.
Similarly, on the National Stock Exchange, the stock opened at Rs 297.50, then declined 1.14 per cent to an intra-day low of Rs 293.50.
Market experts said the fall in the counter was largely a knee-jerk reaction due to the company losing the Nigerian court case.
A Nigerian court has upheld a claim by Econet Wireless that it holds a 5 per cent stake in Indian telecom major Bharti Airtel’s subsidiary in the African nation. Econet Wireless Nigeria (EWN) has sought damages and compensation of about USD 3 billion.
Airtel said it will appeal against the judgement before the Supreme Court of Nigeria.
The Indian company said the disputed shares are in an escrow account and the judgement would have no impact on the stake of Bharti Airtel or other Airtel Nigeria shareholders. (PTI)
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