Allied Technologies Group Ltd. (Altech) has made an application in the Botswana High Court for the winding up of a joint venture agreement between Econet Wireless Group and Altech, known as Econet Wireless Global (also known as AEW).

Altech has advised in the same statement that it is also seeking an alternative remedy for the Botswana High Court to make an order that one of the parties in the joint venture should buy the other out for a sum of US$100 million.

According to a statement from Econet, the group will vigorously contest any attempt to wind up its subsidiary, as it does not consider such a remedy necessary, given that Altech invested $70 million into the company in December last year. The statement adds that: "The alternate remedy being sought by Altech was agreed to by the parties on June 10, once it became clear that the relationship between the parties had broken down irreparably. This is also the remedy contained in the joint venture agreement between the parties, as is normal in business."

Econet says that it has already formally submitted an offer to Altech to buy out its stake in AEW, whilst at the same time making it abundantly clear that Econet has no intention of selling its stake. "The entire approach by Altech in this and other actions which it has taken raises fundamental questions about Altech"s real agenda which will no doubt become clearer to us all as this matter takes its course through the courts in the months and perhaps years to come, as we expect a long and protracted battle," the statement continues.

Econet adds that this decision by Altech comes a day after Econet filed papers to defend the right of the Group CEO, Strive Masiyiwa, to continue with an independent inquiry set up to investigate alleged racist statements against black people in general, and black South Africans in particular, made by a senior white executive appointed to AEW by Altech.

According to Econet, the High Court application in Botswana is designed to prevent this hearing from going ahead, as the issue of one party buying the other had already been resolved two months ago.