From the recent outcome of Bharti Airtel negotiations, it appears that MTN Group is looking to acquire than be acquired by a foreign Telco. Regulatory issues and the need to know local operating conditions in 21 countries mean any acquirer must be prepared to ensure continuity of management. This, together with minority shareholders after a premium valuation, means any acquisition is going to be expensive for the acquirer.
On page 21 of the 2007 annual report, MTN’s stated goal in 2008 is,
actively seek value-adding expansion opportunities in emerging markets with a view to diversifying earnings beyond the concentration in South Africa and Nigeria.
If MTN was up for grabs, then a Gulf or European Telco would be an appropriate company to gobble it rather than an Indian. As posted yesterday, we think that MTN will BUY into Reliance GSM story and may also consider in parts – Reliance Globalcom and Reliance Infratel 🙂 This is assuming RCom will be a holding company and Anil Ambani is unlikely to give up more than 50% in RCom. [Following Dhirubhai’s footsteps]