Market analysts expect an acquisition rather than a merger of South African Telecom giant MTN by India’s largest Mobile Operator Bharati Air Tel and if this comes true it would be the mother of all global takeovers by an Indian Company.
According to Industry watchers, MTN has been asking for 50 Billion Dollars whereas so far, Bharati has offered upto 45 Billion Dollars, comprising of 70% stock and 30% cash. No sanctity is attached to these ratios as Bharati is willing to modify it to 60/40 or even 50/50 as wanted by MTN.
Besides, Bharati is offering management bites also. It is reported to have offered the Chairmanship of Post-deal entity to Mr.M.C.Ramaphosa, the non-executive Chairman of MTN. Under the scheme, Mr.Sunil Mittal would take over as the MTN group CEO and Deputy Chairman and present CEO, Mr.P.Nhleko would be the group’s deputy CEO.
But, for the present what is holding up the deal is the price difference of 180 rands/a share being wanted by majority shareholders of MTN and 175 rands/a share offered by Bharati.
This difference is likely to be sorted out shortly. In fact, analysts feel the deal is within a striking distance. According to them, it could be as early as 17th May, the world’s Telecom Day or 23rd which number is close to Mr.Mittal’s heart. 23rd being his birth-date, it appears in Mittal’s Mobile number to Licence plate.
And as and when the deal takes place, at an estimated price of 45 Billion Dollars or more which is four times more than that of Tata Steel’s take over of Corus at 13 Billion Dollars, it would be crowned as mother of all takeover deals.
…..