Bharti Back to Clinch MTN

It seems that MTN, SA telecom giant is meant to be acquired by an Indian. The whole MTN drama started from last year, first it was India's largest Telecom player, by revenue, Bharti Airtel shown interest in MTN but the deal was finally broken. But things did not end in between, the next offer came of RDAG group MD, Mr. Anil Ambani. But even that effort did not yield positive result, and was broken in between.

But finally after the election in the home country, Bharti again sensed oppurtunity to inlcude MTN into its kitty, and to fullfil its global ambitions plan. Bharti has brought in bankers from Stanchart bank to make the deal and to arrange the money for the deal.

The 23 bn $ worth deal will see both companies, going for both equity sharing and cash dealing. In the end Bharti will shell out 4 bn$ to buy 49% stake in MTN, while MTN like to acquire 36% in Indian telco.

Though just like last time, the deal is facing stiff resistance from shareholders in SA and Bharti has also take in account how things formulate from local telecom perspective, also the power sharing among the top management of current MTN and Bharti.

Thansk&Regards,
Mohit

MTN / R-COM tie up in jittery

After Bharti Airtel broke merger talks with MTN, R-COM without any delay entered with a 45 day exclusivity merger talk with MTN, with a hope to create one of the biggest telecom conglomerate in emerging markets. For intial couple of weeks things seemed to be going smoothly, keeping in mind the scale of the deal and business policies of the two nations, a different deal scenarios were created, from share swaping to R-COM becoming a subsidiary of MTN. But as markets were expecting the deal to work through smoothly, there was a full stop from RIL. The RIL issued a statement saying that in R-COM and MTN deal, they have a Right of First Refusal (RoFR ). This statement from RIL, put the complete deal in jittery, which in turn led to increase in the exclusivity talk time period. Hope to see the animosity between Ambani brothers to be settled off peacefully, so that R-COM and MTN deal end up successfully.

Thanks&Regards,
Mohit Kumar

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