MTN and Bharti continue talks
MTN today released a SENS announcement informing shareholders that it is renewing a cautionary announcement released on SENS on 25 May 2009 and 6 July 2009 concerning discussions regarding a potential transaction between MTN and Bharti Airtel Limited. MTN and Bharti had entered into an exclusivity agreement regarding the potential transaction until 31 July 2009.
“Shareholders are advised that the discussions between the parties regarding a potential transaction are continuing and both parties have agreed to extend the exclusivity period until up to 31 August 2009,” MTN said.
“No decision or agreement to acquire any shares or implement the potential transaction outlined above has yet been made by the Boards of either MTN or Bharti and the discussions may or may not lead to any transaction and the structure and terms of the potential transaction may be adjusted to reflect further discussions between the parties. Shareholders are therefore advised to continue to exercise caution when dealing in MTN’s securities until a further announcement is made.”
“The extension of the exclusivity period by MTN and Bharti is welcome news for the industry. It is clear that there are a lot of synergies between the two companies that could work to their advantage. The fact that the period has been extended is likely to mean that both companies feel as if there is a good prospect for some type of agreement,” said Frost & Sullivan senior ICT industry analyst Lindsey Mc Donald.
“If one takes into account that on two previous ocasions MTN has failed to reach a satisfactory agreement and abandoned these talks, the extension can be seen as a positive sign. The relatively short extension would suggest that they mean to complete this process one way or another without much more delay.”
MTN Bharti deal discussion
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