Though Bharti Airtel declined that it was in talks with MTN Group, the latter in a filing with a stock exchange has confirmed its exploratory talks with Indian telco. As I said earlier, it will be difficult for Bharti Airtel to go solo in its bid for MTN and may seek the backing of cash rich investors like SingTel or Govt of Singapore etc in a joint bid.
Here is a comparison between Bharti Airtel and MTN Group. All figures in Million. For MTN [Dec ending FY07] and for Bharti Airtel [Mar ending FY08]
- Wireless Subscribers base for MTN – 68 mn Vs Bharti Airtel 62 mn
- Revenues – MTN $9,624 Vs Bharti Airtel $6,658
- Net Profit – MTN $1,396 Vs Bharti Airtel $1,669
- MTN operates across several different countries in Africa, while Bharti Airtel has presence in Channel Island, Guernsey apart from India.
Lets see if Bharti Airtel will be able to takeover MTN or will SingTel press Bharti for a merger with MTN [less likely].