Negotiations between the top management of Bharti and MTN are entering a crucial phase. MTN, it is learnt, has put forth a condition that the South African telco’s CEO and group president, Phuthuma Nhleko should be the chief executive of an integrated management committee, combining top executives of both the firms, in case the Indian company manages to emerge as the acquirer.
The discussion on an integrated management committee signals that top honchos of MTN, including Mr Nhleko, could be interested in acquiring shares of Bharti Airtel. The MTN management, including Mr Nhleko, holds 13% stake in the company.
Bharti’s plan to acquire a majority stake might cost it over $20 billion, going by MTN’s market capitalisation of $40 billion. Bharti has commitments from Standard Chartered Bank and Goldman Sachs for loans of $12 billion. Other banks may join the consortium as the discussions progress.
Read more in The Economic Times article.
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