India’s Bharti Airtel has offered to retain the top management at MTN for at least three years and given the option of an all-cash offer to minority MTN shareholders to sew up the planned tie-up between the two firms, the Economic Times reported on Tuesday.
The paper, citing a person familiar with the revised tie-up plan, said MTN would get a 27% stake in Bharti instead of the 25% earlier proposed.
MTN’s minority shareholders would have the option to take $13-billion in cash instead of $7-billion cash and $6-billion worth of stock, the paper said.
Bharti would also cap its holding in MTN at 49% for at least five years. These moves would pacify the South African government keen on retaining MTN’s national character, the paper said.
A Bharti Airtel spokesperson said the company would not like to comment beyond an earlier statement. The company had said on September 9 that despite reports in the media, no agreement had been reached between the two companies and discussions were still ongoing.
The planned tie-up between the two firms, which may lead to an eventual merger, would create the world’s third-largest cellphone group by subscribers but is subject to end-September deadline. The firms have extended the talks twice. – Reuters