BHARTI AIRTEL AND MTN MERGER PDF
After more than a year of on-and-off negotiations, India’s Bharti Airtel and South Africa’s MTN Group appear to be close to striking a deal that could lead to a tie. Bharti Airtel shares jumped as much as per cent on Thursday on news that it had called off merger talks with MTN after the two companies. The SOUTH AFRICAN government said that it supported the proposal merger of Bharti-Airtel and the MTN group in principle. The Indian Government agreed.
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Bharti said the deal would be discussed exclusively till July. Log in Keep me signed in.
Bharti Airtel-MTN $ 24 billion deal called off – The Economic Times
Find this comment offensive? Although it is one of the few companies whose name has not been linked with Zain, Bharti could expand into several African markets with a stake in Zain or its African operations. The announcement that talks were being called off was made after the close of trading. Bharti and MTN said discussions were at an early stage and the firms had set an exclusivity deadline of July Naturally, friends and well-wishers of Sunil Mittal are disappointed.
We see real power in the combination and we will work hard to unleash it for all our shareholders. The Bharti Group head had met the prime minister three times and held discussions with with finance minister Pranab Mukherjee as well as top government officials in a number of ministries.
Leave Your Comment s. But the Indian company has not totally given up, if its statement has is anything to go by. Are you a Business Owner?
MTN deal off, what next for Bharti?
We felt that the deal in its initial format was quite complicated and felt that the price being offered undervalued MTN itself. This was the case with the proposed MTN-Bharti merger, which required certain exchange control and other approvals. Bharti has not given up yet In the end, the politics of national pride derailed the deal as South Africa did not want MTN to lose its independent identity.
In a press statement, the Indian telecom major said that if the deal goes through, it mmtn be achieved through a scheme of arrangement, which would include the following principal elements: It has been eyeing another big deal for some aietel and held failed talks last year with both Bharti and rival Reliance Communications.
To see your saved stories, click on link hightlighted in bold. Never miss mhn great news story! Chandrajit Banerjee, director general, Confederation of Indian Industry, said: Sensex finishes year above 36, posts third straight annual gain.
A full merger would need government and regulatory approval. Additional reporting by C.
This will alert our moderators to take action. Thu, Oct 01 This also marks the seventh attempt by MTN to enter into a merger or strategic alliance with global communication majors.
Get instant notifications from Economic Times Allow Not wirtel. Ironically, the transaction under discussion did not involve any loss of national identity for MTN.
However, some analysts voiced doubt as to whether a deal would be sealed after similar talks collapsed last year.
The South African giant has in the past been in failed discussions with the likes of Vodafone, China Mobile and Reliance Communications. Devidutta TripathyGugulakhe Lourie. Get instant notifications from Economic Times Allow Not now You can switch off notifications anytime using browser settings. Reliance to buy majority stake in renewable energy services firm Kanoda. Fill in your details: Bharti also indicated its gratitude to the Indian government for its support: Bharti wished MTN management and its board success.
Looking ahead, the Indian government needs to think about the changes in our capital account regime that will facilitate the large cross-border transactions that Indian companies aspire to. Thereafter, the MTN board met and formally called off the deal.
There are targets that Bharti could pursue, analysts said. Your Airtdl has been Reported to the admin. Bharti would buy about 36 percent of existing MTN shares at 86 rand each, plus half a newly issued Bharti global depositary receipt, to be listed in Johannesburg, for each MTN share. Such arrangements are also seen protecting the national identities of companies. China Mobile Ltd is under pressure at home from an expensive buildout of a buarti, untested third-generation network that gharti may seek to expand to developing markets.
This will alert our moderators to take action Name Reason for reporting: Neither Ambani could succeed in doing the deal. We probably have more money flowing out due to over and under-invoicing on the trade account.
It is a very well considered move and there is a very strong rationale. MTN shareholders would take another 11 percent of Bharti. While dual listing is a step towards capital account convertibility, it is not necessarily a giant one. ET was annd first paper to flag off the issue of dual listing as a major stumbling block for the deal in its edition dated July 31, MTN, which had We need to scale the Capital wall It was clear from the beginning mergsr regulatory barriers would be the biggest obstacle in consummating the Bharti-MTN deal.
Choose your reason below and click on the Report button. Trading equity stakes aittel give both firms exposure to new markets ripe for growth, while a full merger would yield cost savings, allow for technology sharing, and provide the financial muscle for more expansion, analysts say. Indian telecom major Bharti Airtel has informed the exchanges that it is in talks to pick up a stake in MTN, Africa’s largest mobile group. As the government gradually opens up the capital airel, issuing ordinary shares to overseas investors ought to be on the agenda.