Agility awaits dispute resolution

22 February 2017

Logistics firm invested in Iraq’s Korek Telecom

Kuwait-listed Agility Logistics is awaiting the decision for the arbitration dispute it had filed against the Iraqi government over the company’s $380m investment in Korek Telecom.

The dispute was filed on 9 February with the World Bank’s International Centre for Settlement of Investment Disputes, handles disputes between international investors.

In a filing dated 20 February, Agility said the dispute was filed on the ground of the failure of the Iraqi government to provide an official notice in respect to development relating to their investment in Korek Telecom.

Agility said the non-compliance of the Iraqi government resulted in the expropriation of its investment.

Agility and France Telecom, which has since rebranded to Orange, planned to acquire 44 per cent of Korek Telecom in 2011. Agility was to control the stake by contributing convertible debt and an additional $50m of its indirect stake in Korek Telecom.

Korek Telecom is based in Erbil in Iraq’s Kurdistan region.

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