Kuwait-based logistics company, Agility, said it was seeking to settle by arbitration a $380mn dispute with Iraq’s government over the company’s investment in the Iraqi telecommunications industry.
The company has filed for arbitration at the International Centre for Settlement of Investment Disputes, which is part of the World Bank group and handles disputes between international investors, Reuters reported citing an Agility statement.
The company said Iraq had “indirectly confiscated” its investment, which was worth over $380mn, and violated a bilateral protocol between Kuwait and Iraq on encouraging the movement of capital and investment between the two countries.
In March 2011, Agility and France Telecom, now called Orange, said they would acquire a 44% stake in Iraqi mobile telecoms operator, Korek Telecom. The two groups would form a joint venture, 54 percent owned by Agility, to control the stake, said Reuters.
The firm was to contribute convertible debt and inject an additional $50mn for its 24% indirect stake, with France Telecom paying $245mn for its 20% indirect stake while extending a $185mn, four-year loan to the Iraqi firm.