Johannesburg, June 15: MTN Group Ltd`s largest
shareholder said Bharti Airtel Ltd`s USD 17.3 billion offer
for Africa`s biggest mobile-phone company is only
"indicative".
Public Investment Corp, MTN`s largest shareholder with a
13.5 per cent stake, supports the takeover "in principle" and
is waiting for a final bid and more details, Chief Executive
Officer Brian Molefe said in an interview in Johannesburg
on Monday.
"My understanding is" the price offered "was indicative
and they are still in talks," Molefe said. He said on June 2
that Pretoria-based PIC wants an "improvement" in the offer.
On May 25, Johannesburg-based MTN and Bharti Airtel,
India’s largest mobile-phone operator, said they were in
exclusive talks as a first step to create a company with
annual sales of $20 billion and 200 million subscribers.
MTN and its shareholders would take a 36 per cent stake
in Bharti, which would hold 49 per cent of MTN. This is the
second time the companies have discussed a possible merger.
Bharti offered 86 rand a share and half of one of its
shares for every MTN share acquired. That offer is currently
worth about USD 17.3 billion. "We can understand the strategic imperative and the need for the transaction from MTN`s point of view," Molefe said today.
"They still have to finalize the price, what the
takeover means, and who has what say in the company. We are
waiting for these details."
MTN shares rose 2.60 rand, or 2.2 per cent, to 123.10
rand in Johannesburg today. Bharti shares fell 1.1 per cent to
819.45 rupees in Mumbai.
Bureau Report
