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Uganda Court Stops Shell Unit From Selling Assets, Shareholdings


APRIL 13, 2010

KAMPALA, Uganda (Dow Jones)–An Ugandan high court has issued an injunction prohibiting Shell Uganda Ltd., a unit of Royal Dutch Shell PLC (RDSB.LN), from transferring its shareholding and assets in the country until it settles a dispute with a local property company, court officials said Tuesday.

According to court documents, Shell is required to deposit a requisite security of not less than 35 billion Uganda shillings ($17 million) with the court before it can divest its operations in the country.

The dispute is over commercial properties in Kampala, the Ugandan capital, in which Mercator Enterprises Ltd., a local property company, is claiming unpaid rent in arrears, as well as interest, from Shell Uganda amounting to UGX35 Billion.

Last month, Royal Dutch Shell announced plans to sell its downstream operations in 21 African nations.

Shell Uganda declined to comment.

-By Nicholas Bariyo, contributing to Dow Jones Newswires; 256-75-2624615 [email protected]

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