Judge Joseph Manyungwa issued the order, potentially stopping government plans to hand the country's fixed-line operator to its new buyers this week. Manyungwa granted a request for judicial review made by MTL's former acting chair Kenneth Msonda. Among other things, Msonda is rejecting the offer price of US$ 30.5 million, which he says is too low.

As part of a privatisation drive in 2005, Malawi's government attempted to sell MTL to Telecom Holdings Limited (THL), a consortium made up of local group Press Corporation, insurer Nico Holdings, Detecom and South Africa's Old Mutual Plc.

President Bingu wa Mutharika suspended the sale last year after Msonda's protest, which held that the price agreed was hundreds of millions of dollars short of the company's actual worth. However, Wa Mutharika rescinded his decision in October and ordered that the transaction proceed. The government signed a sale and investment agreement with the buyer, a move Msonda then contested in court.

Source: Reuters - WDR/Intelecon Regulatory News