MTN-Bharti deal on track
But the two companies might miss the July31 exclusivity deadline, analysts said yesterday.
India’s Economic Times reported yesterday that a three-member team from MTN was meeting Indian officials to seek clarity on what rights MTN and its shareholders would get for holding a 36% economic interest in Bharti.
MTN remained tight- lipped about the progress of the negotiations.
Other media reported that a delegation from the Public Investment Corporation , which is MTN’s largest shareholder, with a 13.5% stake, had also gone to India.
Though Bharti could not be contacted for comment, MTN said: “At this stage, MTN has nothing further to add to the cautionary announcement issued to the market.
“The discussions are still in progress. MTN is in exclusive discussions with Bharti Airtel until July31.”
Vunani securities ICT analyst Kate Turner-Smith said the fact that MTN had recently asked for $3.5-billion (R26.7-billion) in financing for the deal, instead of the initial 2.9-billion, was an indication that negotiations were progressing.
“There’s been a lot of speculation around this deal, but I think the intention of MTN is for it to go ahead,” she said.
Khulekani Dlamini, Afena Capital portfolio manager, was reluctant to predict, on the basis of an increase in MTN’s share price and media reports, whether a deal would be struck.
MTN-Bharti deal – will it happen?
The Times
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