Hours before their September 30 deadline, Indian telco Bharti Airtel and South Africa’s MTN remain tight-lipped on whether they would be able to clinch a merger.
The two have proposed a $24 billion deal that would see Bharti picking up 49% in MTN through cash and shares, and MTN and its shareholders buying 36% of Bharti.
Analysts tracking the talks said they could extend the deadline for a third time, amid attempts to work out a solution that would appeal to the governments of both countries. On Tuesday, Bharti gained 1% on the Bombay Stock Exchange while MTN’s shares fell 1% on the FTSE/JSE Africa All Share Index.
The companies have twice extended their merger talks since they began in May. An earlier proposal for merger fell through last year over disagreements on who would control the entity and political sensitivities in South Africa.
While Bharti is expected to issue a statement on the merger today, Dow Jones reported, the fate of the deal is likely to be determined one way or the other by the South African government.
South African President Jacob Zuma is expected to be taking advice from a team that is just back from India and the colleagues in the African National Congress. Indian PM Manmohan Singh raised the matter with Zuma at the G20 in Pittsburgh last week, asking him to treat Bharti fairly.
Earlier this week, an Indian government official denied that Bharti had proposed a dual-listed company post merger, which is not allowed under present regulations.
South African officials had reportedly approached the Indian government about a dual listing because they are keen to retain the operator’s national character. South Africa’s government is said to indirectly hold 21% in MTN.