India’s top mobile firm Bharti Airtel has offered a range of new
concessions to SA’s MTN in order to seal a tie-up, a
report said on Tuesday.
“Bharti Airtel is making a slew of last-minute concessions to sew up a deal with MTN as it awaits a political push to take the planned tie-up past the hurdle of national pride in SA,” the Economic Times newspaper said.
Bharti has also offered MTN minority shareholders US$13bn in cash, rather than a combination of cash and shares, to acquire their 36% stake in the SA firm, the paper said, quoting a source close the deal.
A merger between the two would create the world’s third-largest mobile phone operator by subscribers, which would straddle Africa, Asia and the Middle East.
According to the report, Bharti is also proposing that MTN’s top management retain their positions for the next three years and that it would cap its stake in MTN at 49% for at least five years.
The latest deal would increase the MTN stake in the merged entity to 27% instead of the 25% offered in May.
A final agreement could be blocked by the issue of whether India would allow the merged company to be listed on both the Indian and SA stock exchanges.
The SA government is concerned about a large national company being taken over by a foreign competitor and reports have said it wants the merged company to be listed in Johannesburg as well as Mumbai.
A dual-listed company involves two listed firms that have different sets of shareholders but share ownership of a single business operation. SA allows dual listing, while India does not.
Allowing dual-listed companies in India would involve substantial changes in foreign exchange and stock market laws and would require full cabinet approval.
Bharti Airtel and MTN are in exclusive talks on a merger that will end on September 30 unless extended. — Sapa-AFP