Battle for Jambopay name reveals failed takeover bid
What you need to know:
Web Tribe Limited, which runs the Nairobi County online parking and water payment systems through its subsidiary Jambopay, was at one time the subject of a proposed buyout by a Mombasa-based businessman who now runs a rival firm — Jambopay Express.
Under the proposed share sale agreement, Web Tribe and Mr Manji were to set up an online payment system called Jambopay Express.
Web Tribe has asked the court to stop Mr Manji’s firm from trading as Jambopay Express Limited, as some of its 750 corporate clients have complained of confusion over the name.
A legal battle over the Jambopay trade name has revealed details of a failed buyout that spawned two rival online payment firms.
Web Tribe Limited, which runs the Nairobi County online parking and water payment systems through its subsidiary Jambopay, was at one time the subject of a proposed buyout by a Mombasa-based businessman who now runs a rival firm — Jambopay Express.
Web Tribe, trading as Jambopay, has filed a suit in the High Court claiming that Jambopay Express owner Ariff Manji’s failed bid to buy a 60 per cent stake in the firm saw him use business secrets availed to him during the failed negotiations to set up a rival firm.
The two firms have traded accusations in the suit, as each party claims to be the rightful owner of the Jambopay name.
Web Tribe has asked the court to stop Mr Manji’s firm from trading as Jambopay Express Limited, as some of its 750 corporate clients have complained of confusion over the name.
“In 2012 we had discussions with Mr Manji concerning a possible partnership and financing leading to a draft share purchase agreement. Mr Manji, without permission, went ahead and registered Jambopay Express on October 11, 2012.
“Jambopay Express’ choice of name was designed to defeat the reasonable consumer’s degree of care,” Web Tribe CEO Danson Muchemi said.
Mr Manji has, in his response, claimed that Mr Muchemi was aware that he had registered Jambopay Express, which was initially to be the name of the company’s trade name once the Mombasa-based businessman had purchased a 60 per cent stake in the firm.
“Jambopay Express denies that it proceeded to register itself as a separate legal entity. The name, process and particulars of Jambopay Express was done with the approval of Web Tribe’s directors. Registration was done prior to the collapse of the share purchase agreement,” Mr Manji says.
Under the proposed share sale agreement, Web Tribe and Mr Manji were to set up an online payment system called Jambopay Express. Web Tribe was to own the remaining 40 per cent, and be entitled to two shareholder loans.
After talks collapsed, both parties ended up running online payment systems, which has sparked the vicious legal battle.
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