MTN Group acknowledged on Friday it was in talks about a potential deal, a day after a source told Reuters the company was considering raising about $5-billion to buy assets from Egypt’s Orascom Telecom.
MTN, Africa’s biggest cellphone operator by subscribers, said in a statement it had entered into discussions that may have a material impact on its share price. The discussions may not lead to a transaction, it said.
Ownership of Orascom’s Algerian unit, Djezzy, would likely change hands in the event of a deal, the Reuters source said on Thursday.
MTN might also buy some other, smaller African business from Orascom as well, the source said.
Shares of MTN fell more than 1% in Johannesburg following MTN’s announcement. — Reuters