South African telecoms group MTN is said to be considering acquisitions that would enable it to expand beyond the continent and the Middle East.
However, the company is looking for transformational transactions that would not compromise its South…
South African telecoms group MTN is said to be considering acquisitions that would enable it to expand beyond the continent and the Middle East.
However, the company is looking for transformational transactions that would not compromise its South African control, according to a Bloomberg report citing people familiar with the situation.
In 2008 and 2009, MTN and Indian giant Bharti Airtel had been in talks over a ground-breaking emerging markets merger.
But the discussions collapsed each time, reportedly because of the South African government’s refusal to accept the terms of a proposed dual-listing on the Johannesburg and Mumbai stock exchanges.
Bharti since snapped up Zain’s African operations for US$10.7bn.
MTN’s new targets could reportedly include Africa and Latin America-focused Millicom as well as some Indian operators such as Reliance Communications, which it had been in talks with in 2008, and Aircel.
To have the government on its side, which indirectly controls part of MTN via the Public Investment Corporation pension fund, the company may have to use one of its subsidiaries for a takeover or merger, analysts were quoted as saying. This would prevent a dilution in South African owners’ stakes.
MTN, which currently has a market capitalisation of R414bn (US$40bn), is already present in 21 countries across the Middle East and Africa. Recently, the operator has been linked to several potential deals on the continent, including in Kenya, Uganda and Ethiopia.
