MTN’s board has approved $1 billion (R10.65 billion) for expansion into India, with the group reportedly in talks with three firms based in the Asian country.
CNBC TV18 reported that MTN executives are currently in India to explore opportunities with multiple players including Tata Group, Videocon Group and Aircel.
The channel reported that MTN’s board has approved a $1 billion expenditure in India.
It said that MTN has already held talks with Tata Group, twice, with respect to Tata Teleservices. “They are also exploring conversations with other players including Videocon and Aircel,” a CNBC TV18 reporter said.
MTN Group president and CEO, Sifiso Dabengwa, however, poured cold water over any current deals in India, in answering questions at the group’s interim results presentation last week.
“Bankers continuously come to our offices with potential acquisitions and potential transactions…we always investigate, or look into them. Up until now we haven’t really found anything that was worth doing,” Dabengwa said.
“Yes we will get bankers coming with opportunities in India, with opportunities in Mexico, in Australia…so we are continuously looking for meaningful opportunities.”
He said that MTN was not looking for geographic expansion simply for the sake of it, adding that some of the comments made in the press were not accurate.
Videocon Group is a maker of consumer electronics in India; however it also has its own line of mobile phones, and through Videocon Telecommunications, it has a license for mobile service operations across India.
Aircel is an Indian mobile network operator headquartered in Chennai.
Last year, MTN Group held detailed discussions for a potential acquisition in India with Reliance Communications, the company it tried unsuccessfully to merge with in 2008.
However, the talks were put on hold, according to Bloomberg, citing “three people with knowledge of the situation”.
The media house said that MTN had been discouraged by a revision in India of its telecommunications mergers and acquisitions rules.
MTN has also previously held talks with Bharti Airtel for a potential R24 billion merger deal in 2009, which was called off.
CNBC TV18 reported that MTN executives are currently in India to explore opportunities with multiple players including Tata Group, Videocon Group and Aircel.
The channel reported that MTN’s board has approved a $1 billion expenditure in India.
It said that MTN has already held talks with Tata Group, twice, with respect to Tata Teleservices. “They are also exploring conversations with other players including Videocon and Aircel,” a CNBC TV18 reporter said.
MTN Group president and CEO, Sifiso Dabengwa, however, poured cold water over any current deals in India, in answering questions at the group’s interim results presentation last week.
“Bankers continuously come to our offices with potential acquisitions and potential transactions…we always investigate, or look into them. Up until now we haven’t really found anything that was worth doing,” Dabengwa said.
“Yes we will get bankers coming with opportunities in India, with opportunities in Mexico, in Australia…so we are continuously looking for meaningful opportunities.”
He said that MTN was not looking for geographic expansion simply for the sake of it, adding that some of the comments made in the press were not accurate.
Videocon Group is a maker of consumer electronics in India; however it also has its own line of mobile phones, and through Videocon Telecommunications, it has a license for mobile service operations across India.
Aircel is an Indian mobile network operator headquartered in Chennai.
Last year, MTN Group held detailed discussions for a potential acquisition in India with Reliance Communications, the company it tried unsuccessfully to merge with in 2008.
However, the talks were put on hold, according to Bloomberg, citing “three people with knowledge of the situation”.
The media house said that MTN had been discouraged by a revision in India of its telecommunications mergers and acquisitions rules.
MTN has also previously held talks with Bharti Airtel for a potential R24 billion merger deal in 2009, which was called off.
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