New Delhi, Aug 3 (Inditop.com) Bharti Airtel and South Africa’s MTN Monday said they were extending their talks for a proposed $23-billion financial alliance till Aug 31, having failed to reach a pact within the earlier deadline that had expired Friday.
“No decision or agreement to acquire any shares or implement the potential transaction outlined above has yet been made by the boards of either MTN or Bharti,” the South African telecom company said in a statement.
“Shareholders are advised that the discussions between the parties regarding a potential transaction are continuing and both parties have agreed to extend the exclusivity period until up to 31 August 2009,” said the statement.
“The discussions may or may not lead to any transaction and the structure and terms of the potential transaction may be adjusted to reflect further discussions between the parties.”
The two groups are discussing options under which Bharti will acquire 49-percent stake in MTN and the South African company, along with its shareholders, will buy 36-percent equity in the Indian company.
The potential transaction is proposed to create a leading telecom service provider group, aligning Bharti’s market-leading Indian business with MTN’s growing African and Middle Eastern operations.
Both Bharti and MTN have over 100 million subscribers and the deal will make the combined entity among the top five telecom service companies in the world, with annual revenues of $20 billion.
