Bharthi Airtel


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deal between bharti airtel and MTN

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Bharthi Airtel

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  2. 2. <ul><li>Bharti Airtel formerly known as Bharti Tele-Ventures LTD (BTVL) is the largest cellular service provider in India , </li></ul><ul><li>with more than 110 million subscribers as of 2009 </li></ul><ul><li>Founded July 07, 1995 </li></ul><ul><li>founder(s) Sunil Bharti Mittal </li></ul><ul><li>Headquarters New Delhi , India </li></ul><ul><li>Key people </li></ul><ul><li>Sunil Mittal ( Chairman ) & ( MD ) </li></ul><ul><li>Sanjay Kapoor ( CEO ) </li></ul>
  3. 3. GROUP OF COMPANIES <ul><li>BHARTI AIRTEL </li></ul><ul><li>BHARTI TELETECH TELECOM SEYCHELLES </li></ul><ul><li>COMVIVA TECHNOLOGIES LTD </li></ul><ul><li>FIELDFRESH FOODS PVT.LTD </li></ul><ul><li>BHARTI RETAIL </li></ul><ul><li>BHARTI AXA GENERAL INSURANCE </li></ul><ul><li>BHARTI INFRA TEL </li></ul><ul><li>BHARTI AXA LIFE INSURANCE </li></ul><ul><li>BHARTI AXA INVESTMENT MANAGERS </li></ul><ul><li>CENTUM LEARNING LIMITED </li></ul><ul><li>JERSEY AIRTEL </li></ul><ul><li>GUERNSEY AIRTEL </li></ul><ul><li>BHARTI FOUNDATION </li></ul><ul><li>BHARTI REALTY </li></ul>
  4. 4. <ul><li>“ MY TELEPHONE NETWORK” </li></ul><ul><li>MTN Group is a South Africa -based multinational mobile telecommunications company, operating in many African and Middle Eastern countries. </li></ul><ul><li>MTN Group's President and CEO is </li></ul><ul><li>Phuthuma Nhleko </li></ul>
  5. 5. <ul><li>MTN describes itself as &quot;the leader in telecommunications in Africa and the Middle East&quot; and as of early 2007 is active in 21 countries. </li></ul><ul><li>MTN Group provides cellular phone service to more than 80 million subscribers </li></ul>
  6. 6. <ul><li>MTN BlackBerry </li></ul><ul><li>MTN International Roaming </li></ul><ul><li>MTN Banking </li></ul><ul><li>MTN EVD </li></ul><ul><li>MTN Mobile TV </li></ul><ul><li>MTN Me2U </li></ul><ul><li>MTN CallerTunez </li></ul><ul><li>MTN Zone </li></ul>
  7. 7. DEAL <ul><li>In May 2008, it emerged that Bharti Airtel , an INDIA -based telecommunications company, was exploring the possibility of buying MTN Group. </li></ul><ul><li>The Financial Times reported that Bharti was considering offering US$19 billion for a 51% stake in MTN, which would be the largest overseas acquisition ever by an Indian firm. </li></ul>
  8. 8. <ul><li>However, talks fell through after a few days and Bharti Airtel pulled out of the proposed deal on May 24. </li></ul><ul><li>Reliance Communications is in talks with MTN for a &quot;potential combination of their businesses.&quot; If realized, the estimated worth of the combined entity would have been $70 billion (£35 billion), with 116 million subscribers worldwide </li></ul>
  9. 9. <ul><li>on July 18, the two companies announced that they had mutually decided to end discussions regarding the merger. </li></ul><ul><li>In May 2009, Bharti Airtel again confirmed that it is in Talks with MTN and companies have now agreed discuss the potential transaction exclusively by July 31, 2009 </li></ul><ul><li>Bharti Airtel said in a statement “Bharti Airtel Ltd is pleased to announce that it has renewed its effort for a significant partnership with MTN Group&quot; </li></ul>
  10. 10. REASONS TO COLLAPSE <ul><li>The sticking point of the deal has been the South African government's insistence that MTN have a dual listing. Indian law does not currently allow for this. </li></ul>
  11. 11. <ul><li>Existing FEMA provisions do not allow Indian companies to directly list their shares on an overseas stock exchange. </li></ul><ul><li>MTN and its shareholders would acquire a 36% economic interest in Bharti, while it's looking at 49% in MTN. </li></ul><ul><li>South African's worry that control of MTN, which is perceived as a national champion, could pass in to foreign hands </li></ul>