Millicom International Cellular S.A. (Millicom) (Nasdaq Stock Market : MICC and Stockholmsbörsen : MIC), the global telecommunications company, today announces that its subsidiaries Millicom International Operations, B.V. (MIO B.V.) and Sentel GSM S.A (Sentel), have instituted arbitration proceedings with the International Center for the Settlement of Investment Disputes (ICSID) against the Republic of Senegal under provisions of Sentel’s license and international law. MIO B.V. and Sentel seek compensation for the purported expropriation of the Senegal license and monetary damages for breach of the license.
Also today, the Republic of Senegal instituted court proceedings in Senegal against Millicom and Sentel. In that proceeding, the government alleges that it has cancelled Sentel’s license and seeks damages against Sentel and Millicom under various theories. Millicom believes that the action filed by the Republic of Senegal is baseless and ignores the agreement between Sentel and the Republic of Senegal to submit any dispute concerning the license to an international arbitration forum.
Millicom’s commitment to its business in Senegal remains strong and MIO B.V. and Sentel intend to vigorously pursue all available remedies in the matter before the international arbitration forum.
(Source : Millicom International Cellular S.A., 11 november 2008)
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