With talks for the BHARTI-MTN merger underway since 25 May, SingTel could see its stake fall to a significant extent after the merger. Singapore Telecommunications (SingTel), is one of the major stakeholders in Bharti Airtel as per a Citigroup report, “SingTel, which operates in Singapore and Australia, has no direct involvement in the deal but its current 30.5 per cent stake in Bharti (will) get diluted to 19.4 per cent,” As per the same report, SingTel will become a smaller shareholder in a larger entity.
A spokesperson of SingTel was quoted by agencies as saying that it would continue to be actively involved in due diligence and key aspects of the transaction.Bharti has consulted us and discussions are ongoing, the spokesperson confirmed to agencies. A Bharti spokesperson, however, refused to comment on the report.
The Citigroup analysts questioned whether SingTel had a say in the whole transaction – “Does Bharti need SingTel more or is it now the other way around?” asked the report. It said that the company’s press release highlights Bharti as the primary vehicle for the BhartiMTN combine to pursue further expansion in India (Asia) and MTN as the primary vehicle for Africa and Middle East expansion.
Duane May 30, 2009 at 10:48 am
@Biswas
while the deal is largely an “insider” for AIRTEL the huge impact on mobile users (if the MTN-BHARTI deal goes thru) is unimaginable.
Wait and Watch.
Biswas May 30, 2009 at 3:06 am
I DONT THINK THIS DEAL HAS IMPACT ON MOBILE USERS!! IT’S INSIDER FOR AIRTEL !!
Duane May 28, 2009 at 9:17 am
Hi
Deepak May 28, 2009 at 4:19 am
Why u putting all the stock market thing hear ? Its not retevent to telecom talk. Your stuff must be subjected to mobile or telecom service user with operator,