India-based Bharti Airtel has extended the deadline for exclusive talks with South Africa’s MTN over the possible merger that is expected to create a telecom group serving Asia, Middle East and Africa with around 200m subscribers. Bharti said that the period for talks has been extended by one month to September 30, 2009.
Sunil Mittal, chairman of Bharti, said in an exclusive interview with ET NOW that the company is not looking at sweetening the deal. “There are no contentious issues over the deal structure. During discussions, there will be adjustments to what was announced earlier. But that is not the area of focus.
“We are looking at administrative issues, the process of seeking permissions and working towards a scheme of arrangement acceptable to all.
Bharti said in a statement: “No decision or agreement to acquire any shares or implement the potential transaction outlined above has yet been made by the boards of either Bharti or MTN and the discussions may or may not lead to any transaction.”
Under the proposed plan revealed in May, Bharti Airtel has planned to acquire 49% stake in South Africa’s MTN Group and, in turn, MTN and its shareholders would acquire an approximate 36% economic interest in Bharti – of which 25% would be held by MTN and 11% by its shareholders.
