Motsepe’s ARM faces $195m law suit in Tanzania – report

Citing an affidavit filed in the commercial court in Dar es Salaam by Stith’s daughter Mary, who is president of the Pula Group, Business Times said Pula Group started talks with ARM executives in 2019 to explore a possible joint venture.

The parties entered into a formal confidentiality agreement which included non-disclosure, non-competition and standstill clauses, said Business Times.

Pula Graphite contends that ARM undertook to “not use the confidential information for any competitive or commercial purpose or in any matter detrimental to the interest of [Pula].”

In September 2021 the company learnt that a joint venture, Arch Emerging Market Partners, which included ARC as one of the three partners had bought “a substantial amount” of shares in Evolution Energy to help develop the Chilalo project.

Responding on behalf of Motsepe, ARC and Arch, ARM on Friday acknowledged having considered investing in the Pula graphite project, but said it believed there was no merit in Pula’s case.

“Pula issued summonses against ARM, ARC, Arch and Dr Patrice Motsepe, alleging breach of the confidentiality agreement … [all] deny any breach of the confidentiality agreement and also deny that there is any merit to the allegations and claims brought by Pula,” ARM told Business Times.

“The matter is currently before the High Court of the United Republic of Tanzania, Commercial Division. As such, ARM is not able to comment further.”