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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Leave Your Comment s. It is a very well considered move and there is a very strong rationale. The South African rand slipped 2. He will go mefger something bigger than MTN.
Bharti Airtel talks shift to full takeover of MTN – Livemint
Telecom News Telecom Policy. Shares of Bharti ended flat in cautious trade at Rs Choose your reason below and click on the Report button. Drag according to your convenience. China Mobile Ltd is under pressure at home from an expensive buildout of a new, untested third-generation network that it may seek to expand to developing markets.
Although it is one bhatti the few companies whose name has not been linked with Zain, Bharti mwrger expand into several African markets with a stake in Zain or its African operations.
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. The Thomson Reuters Trust Principles.
Bharti said the deal would be discussed exclusively till July. Bharti also indicated its gratitude to the Indian government for its support: The South African giant has in the past been in failed discussions with the likes of Vodafone, China Mobile and Reliance Communications.
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.
The MTN deal not going through should not be seen as a dampener. Such arrangements are also seen protecting the national identities of companies. Get instant notifications from Economic Times Allow Not now. Sensex finishes year above 36, posts third straight annual gain.
My Saved Articles Sign in Sign up. Thu, Oct 01 There are targets that Bharti could pursue, analysts said. It wanted an assurance from the Indian government that it would amend laws to allow DLCs. Anf, friends and well-wishers of Sunil Mittal are disappointed.
Bharti Airtel-MTN $ 24 billion deal called off
We probably have more money flowing out due to over and under-invoicing on the trade account. ET was the first paper to flag off the issue of dual listing as a major stumbling byarti for the deal in its edition dated July 31, In a press statement, the Indian telecom major said that if the deal goes through, it would be achieved through a scheme of arrangement, which would include the following principal elements:.
But the South Africans wanted assurances for the future, which the Indian government was not in a position to give as hbarti said that allowing dual listing will need major amendments to key corporate laws and cannot be done in haste.
As an entrepreneur, you just move on.
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. To see your saved stories, click on link hightlighted in bold.
Trading equity stakes would give both firms exposure to new markets ripe for bjarti, while meeger full merger would yield cost savings, allow for technology sharing, and provide the financial muscle for more expansion, analysts say.
The announcement that talks were being called off was made after the close of trading. The announcement also disappointed South African markets. The exclusive talks had been extended twice since they started on 25 May, a year after the two phone firms gave up their first merger attempt. Some Indian analysts said the firms would not have embarked on new talks unless control issues had been settled.
Fill in your details: This also marks the seventh attempt by MTN to enter into a merger or strategic alliance with global communication majors. While dual listing is a step towards capital account convertibility, airyel is not necessarily a giant one.
Devidutta TripathyGugulakhe Lourie. 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.
Bharti Airtel, South Africa’s MTN In $23 Billion Merger Deal | VCCircle
This deal structure needed an approval from the government of South Africa, which has expressed its inability to accept it mergdr the current form. Will be displayed Will bhadti be displayed Will be displayed. Ironically, the transaction under discussion did not involve any loss of national identity for MTN. Log in Keep me signed in. Are you a Business Owner? Never miss a great news story! Bharti wished MTN management and its board success.
South African communications minister Siphiwe Nyanda said before the announcement on Wednesday that MTN should remain a domestic company. MTN, alrtel had But it has expressed an interest in Nigeria, a key MTN market. Chandrajit Banerjee, director general, Confederation of Indian Industry, said: But the Indian company has not totally given up, if its statement has is anything to go by. But the risks of capital outflows may not be huge.