While Nigerian analysts believe the Nigerian High Court has made the correct decision in blocking a bid by Telkom South Africa to sell its Multi Links Communications unit in Nigeria, they are worried that the situation could set precedent that may push potential investors out of the country. “There is certainly a lot of concern that despite the appropriate measures being taken to ensure any business deal in the country is succinct, we fear that it could put investors on the outside while the situation calms down,” said Thomas Rigani, an Italian telecom consultant for European IT companies. He added that companies do like to see any semblance of red tape when they look at places to invest. “This was the right decision by the high court to get the South African company to deal with its contracts, but it does put some concern for international corporations who are viewing Nigeria with potential,” he said. Late last week, a Nigerian High Court blocked the selling of Multi Links due to a contract controversy with Helio Towers Nigeria. The court said that the contract dispute must be concluded before a sale can be possible. After pulling out its investments from Nigeria last year claiming the investment was no longer profitable, Telkom South Africa sought to sell Multi Links Communications in a bid to partly recover its investment, reported IDG news agency. For now, investors and analysts are watching the case closely to see if a solution can be met in the near future in order to stave off any potential investment withdrawals. BM
