The Independent Communications Authority of South Africa ( Icasa) on Monday said that the proposed tie-up between cellphone group MTN and India’s Bharti Airtel may need to be the subject of public hearings.
”MTN’s licence is clear — if the transaction involves change in shares it needs to notify the authority before the transaction is concluded,” said Sekgoela Sekgoela, Icasa spokesperson.
”Once the authority has that information [details of any share transaction] it can determine whether the transaction will need to be subjected to a public process or not; it cannot do so until it has all the facts before it.”
The deal is subject to an end-September deadline. The firms have extended talks twice.
Bharti has increased the cash component of its offer for a 49% stake in MTN to $10-billion from a proposed $7,6-billion, two people familiar with the matter said last week.
On top of that, Bharti would pay $4-billion in stock for a total package of $14-billion, 7% more than the earlier $13-billion proposed deal.
On Sunday, Communications Minister Siphiwe Nyanda expressed caution over the proposed transaction.
Any deal should take into account MTN as a ”South African company with a footprint in Africa” and ”we are interested that it should remain” here, said Nyanda. — Reuters