Tuesday, May 26, 2009

Bharti Needs $4 Billion To Fund MTN Deal

. Tuesday, May 26, 2009

By stockOzone team

Bharti-Airtel, the Indian telecommunication company and MTN, the African telecommunication company, are talking for a strategic partnership, which will see Bharti acquire a 49% shareholding in MTN. MTN and its shareholders would acquire an approximate 36% economic interest in Bharti.

Let’s understand the complexities of this deal and both financial and strategic nature of this deal. What does it mean for Bharti to move beyond the Indian market? Does the African market represent a huge potential? And finally what kind of legal hurdles or challenges will this deal have to face?

Rajeev Chandrasekhar, Rajya Sabha MP,Founder, BPL Mobile, said, "It is an excellent move. And if Bharti intends to move to number two or three position, it needs take a leap as big as this.”

Abizer Diwanji, Head—Financial Services, KPMG, said, “The deal is innovatively structured."

Disclosure: Author does not own any of the stocks discussed here.

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