BHARTI AND MTN – TRYING LUCK ONCE AGAIN
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(No Ratings Yet) Loading ...By divya
Published: August 23, 2009
In the month of May 09, as talks were going on about the idea of merging the India’s biggest telecom service provider “Bharti Airtel” and South Africa’s “MTN Group“, it was decided that the decision will be informed by July 31 2009. However, now it has again been extented to one month – August 31 2009 with no reason of extension.
According to the terms and conditions as proposed in the month of May09, it was agreed that though the two companies are having discussions to tie-up their business knots together, they would still remain as two different entities until they formally merge.
Sunil Bharti Mittal, the Chairman and the managing director of India’s Leading Service providers “Bharti Airtel” is having tie-up talks with South Africa’s MTN Group and the outcome of this merger would be to acquire 49% of the shareholding of MTN. In turn, MTN group and it’s shareholders will be acquiring 36% of the economic interest in Bharti (25% will be held by MTN Group and the rest will be held by it’s Shareholders).
If the two Telecom giants manage to tie-up business knots together, they would have a revenue of $20 billion with Sunil Bharti to concentrate on the business in the whole of Asia and MTN to concentrate on the Middle East and Africa.
Tagged with: August 31, Bharti Airtel, Merger, MTN Group, Telecom, Tie-up
