In a statement, a spokesperson for Econet confirmed that following media reports that Zain was trying to sell its African operation, its lawyers, Freshfields of London, had since written to Zain’s lawyers reminding them that they could not offer for sale shares whose ownership is in dispute, and is the subject of litigation in a number of international jurisdictions, and in particular the United Nations Commission on International Trade Law arbitration.

Econet is claiming its pre-emption rights were breached when its predominantly Nigerian partners decided to sell their shares in V-Mobile to Zain in 2006, itnewsafrica.com reported.

Last week media reports indicated that the Zain Group, the Kuwaiti based mobile telecommunication company with operations in 22 countries in Middle East and Africa, may agree to a deal to sell its African operations to a French company for up to USD 12 billion.

The reports about the impending sale first appeared in the Kuwait-based Al Qabas daily reports. People familiar with the matter told the paper that Zain was waiting for a reply from the French company.

If the deal between Zain and the French company does not go through, Zain will study bids made by Chinese and European companies. But if it sails through, the French company will also buy Celtel Africa’s debts, which will be discounted from the African telecom operator’s price.

As the holding company, Zain has been very profitable. In the year ended December 31, 2008 Zain Group posted record results for the financial year ended, with revenues increasing by 26 per cent to reach $7.441 billion, although fourth quarter results were hit by currency fluctuations.

The group’s customer base grew by 50 percent to reach 63.5 million subscribers, while net profit increased by 6 per cent compared with 2007 to reach $1.2 billion Zain. The profits were mainly pushed by growth in Africa where it has the largest presence. Zain has a presence 16 African countries and 6 in the Middle East.