A Nigeria Court verdicts that Bharti Airtel’s ownership on its subsidiary Airtel Nigeria is “null and void”. The basis of this judgment was that the co-founder and 5% shareholder Econet Wireless was not consulted properly on the transfer.

This South-Africa based company has put this Indian carrier in dispute will hamper the one of the most important Africa Operation, said the founder of the company over telephone to Reuters.

Bharti Airtel is entangled already in a legal case for occupying Zain’s $9billion operation including 65% of the Zain Nigeria.

Industry specialist says that this judgment will not harm Bharti Airtel much immediately as it has always indemnified  every possible legal danger while taking over the company from Kuwait’s Zain and on the other hand the small size of Econet’ stake.

The main allegation of Econet is that 5% of the stake has been cancel by Airtel Nigeria when Zain took the control and the judgment said, “All actions and resolutions taken by the company since October 2003 at which Econet Wireless Limited was entitled to be notified, and to participate in, as a shareholder, but was prohibited, are null and void”. This verdict even includes the sell of shares, issue of shares and share transfer to any third party.

Econet added that after this judgment the name of the company has to be reverted as Econet Wireless Limited and have to reinstate it’s 5% of share folding. Nigeria contributes as much as 9.5% to the consolidated amount of Airtel Nigeria’s profit.

On the hand, Bharti Airtel said that it would appeal to the court’s hearing and this judgment in particular will not hamper any of the shareholders in Bharti Airtel. For Bharti, it’s really a situation on stake while Econet is happy with this verdict.