SingTel involved in Bharti-MTN bid talks

Singapore Telecommunications Ltd is actively involved in the takeover talks between India's top mobile firm Bharti Airtel Ltd and South African operator MTN Group Ltd, a source familiar with the situation said on Monday.

However according to sources it was premature to speculate if SingTel -- which is Bharti's largest shareholder with over a 30 percent stake -- would provide any form of financial support to Bharti for the bid as the deal was evolving.

SingTel, Southeast Asia's largest phone company, declined to comment.Bharti also said in a separate statement it had not made any offer to buy the whole or part of MTN.

The Asian Wall Street Journal, quoting an unidentified source, said on Monday that Bharti was considering raising its offer to around 175 South African rand ($22.63) a share for control of MTN, and an official bid could come this week.

Read more in The Economic Times article

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Also read related story in The Economic Times article.

Bharti may rope in SingTel for MTN buy

India's largest private telecom company Bharti Airtel is believed to have held discussions to rope in Singapore Telecommunications Ltd (SingTel), which directly and indirectly holds 30.5 per cent in the company, to bid for South African telecom major MTN Group.

MTN's largest shareholder with 23 per cent is the Alpine Trust, which is controlled, in turn, by two shareholders that have pooled their shares in the trust.One is Newshelf664, a company floated by MTN staff and management and the other is M1, controlled by the Makati family. The other major shareholder is PIC, a South African government-owned pension fund, which has 13.5 per cent. The rest of the shareholding is widely dispersed.MTN is listed on the Johannesburg stock exchange.

An initial entry in the company might be through the buyout of the Alpine Trust stake. Alpine has a market capitalisation of around $33 billion. If Bharti considers buying 51 per cent, the bill will be over $20 billion (Rs 80,000 crore).Goldman Sachs is believed to have agreed to provide debt of up to $12 billion, while the remaining will be taken care of by Stanchart by issuing Bharti's equity to MTN shareholders.

SingTel/Bharti can buy Temasek's Airtel stake

Singapore Telecom (SingTel) and Bharti Enterprises, the top two shareholders of Bharti Airtel, will have the first right to buy the stake acquired by Singapore government's investment arm Temasek in the mobile company.

Temasek has been granted an option to indirectly acquire 4.99% in Bharti Airtel.SingTel, which owns 30% in Bharti Airtel, today said it along with Bharti Enterprises have the first right of refusal to the shares bought by Temasek in the mobile firm.

"Should Temasek decide to exercise its option to purchase the shares from Bharti and should Temasek decide to sell these shares thereafter, Bharti and Singtel have the first rights," a SingTel spokesperson told PTI.

A Bharti spokesperson said Temasek, after it exercises the option to acquire the stake in Bharti Airtel, will be bound under the agreement that at the time of exit it has to sell these shares to either one or both Bharti and SingTel. It cannnot sell the stake to any third party.

Read more in The Business Standard article.