Refund and Resolution:
Under the terms of the agreement, BGI-Ethiopia has refunded the earnest payment made by Purpose Black Ethiopia, effectively ending the deal. This brings a close to the complex negotiation that had reached an impasse earlier this year.
Tracing the Dispute:
The conflict originated from a bid won by Purpose Black Ethiopia in July 2023 to purchase BGI’s headquarters for five billion Birr. However, negotiations over the sale stalled, ultimately leading to BGI terminating the contract in March 2024, citing a lack of commitment from Purpose Black.
Differing Perspectives:
Purpose Black contested the termination, claiming BGI hadn’t fulfilled necessary requirements for the sale to proceed. They emphasized their readiness to complete the purchase once the contractual obligations were met. BGI, on the other hand, expressed concerns about Purpose Black’s financial capacity to fulfill the payment terms.
Court Intervention and Resolution:
Following the breakdown in negotiations, Purpose Black petitioned the court to freeze BGI’s assets, fearing potential financial misconduct. The court granted the injunction in March 2024. Court-annexed mediation then facilitated a settlement where the earnest payment was returned and the sale was cancelled.
This outcome brings closure to a dispute that had cast a shadow on the proposed transaction. Both parties have moved on, with BGI likely seeking alternative buyers for its headquarters.
