Bharti confirms interest in MTN
06 May 2008
Bharti confirms interest in MTN
Indian operator Bharti Airtel has confirmed that it is discussions with South Africa-based MTN Group, in a move that is rumoured to be valued at around $17bn and would potentially make the Indian operator among the largest in the world.
Bharti confirmed that it is in "exploratory discussion" on Monday, although it stressed that talks "are still at an early stage, are exploratory in nature and may or may not lead to any transaction".
As the biggest operator spanning the Middle East and Africa regions, MTN is something of an obvious target for major investors looking to increase their presence in high growth emerging markets.
MTN had a total subscription base of 68.2 million at the end of the first quarter, with operations in 21 countries. The carrier is 76.9 per cent publicly traded on the Johannesburg Stock Exchange, so Bharti would have to make an offer to institutional and private investors to acquire a majority stake in the company.
MTN's $5.5bn acquisition of Investcom in 2006 expanded its footprint outside South Africa, but many of the markets in which it operates have relatively low penetration rates, making it a prime candidate for an acquisition approach.
To comment on any articles, please contact us at chatback@telecoms.com or have your say on our blog.
Bookmark this page
