Bharti working on revised MTN deal; may seek more debt
New Delhi: Bharti Airtel is working on a
revised offer for a possible deal with South Africa's MTN,
which may entail higher cash outgo and additional debt to be
raised by the Indian company to fund the transaction, sources
While there is still no certainty about the closure of
the deal, the two sides are believed to be working on
finalising the terms and conditions over next few weeks.
After their earlier exclusive talks period ended on July
31, the two companies extended it by a month and now have time
till August 31.
Bharti Airtel is in talks with MTN group for a share-swap
deal to create a 23 billion dollar telecom entity is likely to
seek more bank loans to fund the transaction, said sources.
Bharti, which had earlier stated that the terms of the
potential deal may be adjusted, is learnt to be working out
the revised terms on MTN share price increase and raising the
cash component in the deal.
The source said in both cases the outgo are likely to be
much higher than the originally estimated four billion dollar
for which Bharti has already approached the PSU bank State
Bank of India for two billion dollar.
When contacted a Bharti spokesperson said, "Beyond what
we have already communicated in our press statement, we have
no further comment to offer at the moment."