Bharti eyes South African teleco MTN once again

New Delhi, May 25 (PTI) Indian telecom giant Bharti
Monday announced that it has opened talks for acquiring 49 per
cent stake with South African MTN in an estimated 23 billion
dollar deal, exactly a year after it pulled out of
negotiations alleging that foreign company had deviated from
agreement.

The two companies signed an agreement to hold
exclusive talks for a deal that could include USD 10 billion
in cash and USD 13 billion in shares and see emergence of a
combined entity of USD 20 billion in terms of revenue and 200
billion subscribers globally.

In almost identical statements detailing the contours
of the agreement, the two sides said that MTN too would
acquire 36 per cent stake in Bharti as part of the deal.

After the announcement, Bharti shares plunged Rs
46.45 or 5.4 per cent to close at Rs 811 on BSE.

"Bharti would acquire a 49 per cent shareholding in
MTN and, in turn, MTN and its shareholders would acquire an
approximate 36 per cent economic interest in Bharti, of which
25 per cent would be held by MTN with the remainder held
directly by MTN shareholders," Bharti said in a statement.

MTN was also courted by Anil Ambani Group company RCom
after Bharti pulled out of negotiations on May 26 last year
accusing that the South African company's Board changed the
structure to make Indian teleco its subsidiary.

Ambani, however, could not transact the deal as his
elder brother Mukesh-led RIL slapped legal notices on MTN
warning them that it had the Right of Firt Refusal on Reliance
Communication. PTI ANA