R62m settles Zungu conflict

TRANSNET paid a consortium R62million to settle a dispute over the logistics firm's sale of its shares in cellphone group MTN, the Sunday Times said yesterday.

TRANSNET paid a consortium R62million to settle a dispute over the logistics firm's sale of its shares in cellphone group MTN, the Sunday Times said yesterday.

Transnet's payment to the Umthunzi Telecoms consortium, led by businessman Sandile Zungu, brings to an end a five-year long dispute over who should have been allowed to buy Transnet's 5percent stake in MTN.

Umthunzi was initially selected as the preferred bidder, but Transnet cancelled the talks and sold the stake for more than twice what was offered by the consortium after a sharp rise in the MTN share price, the paper said.

Neither Transnet nor Zungu could immediately be reached to confirm the figure mentioned by the paper. - Reuters

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