Business
S’Africa MTN Seeks $3.5bn Loan For Merger
South Africa’s MTN is in talks with a group of lenders to secure a $3.5 billion syndicated loan to back its proposed merger with India’s Bharti Airtel, banking sources close to the deal said.
The two telecom companies are in exclusive talks over a deal that could lead to a full merger, creating the world’s third biggest wireless group with more than 200 million subscribers and combined revenue of $20 billion.
Industry watchers say the impact of this on MTN subscribers in Nigeria and other countries, is that it will almost certainly come with a change of name and rebranding process. This they say will likely jar the sensibilities of the companies subscribers and re-order their perception.
In another vein, they say that it will enrich this environment intellectually and financially as it will challenge the capabilities of the concerns involved in the process, as well as reward them.
MTN is the second major telecom operator in Nigeria, engaged in merger and acquisition talks which has change of name and rebranding implications. MTN has over 20 million subscribers in Nigeria.
The Zain Group of Kuwait, which operates in several African countries and has over 15millionsubscribers in Nigeria, has been in talks with Vivendi of France for the sale of Zains Africa operations.
Media experts say that if Zain sells, the company will become an international reference point in corporate rebranding.
Zain Nigeria, has in the past seven years been owned by different operators and had changed names severally.
It had transformed from Econet Wireless Nigeria to Vodacom, then to V-mobile, Celtel to its current name, Zain.
As regards the MTN/ Bharti discussions, the Bank of America-Merrill Lynch and Deutsche Bank are advising MTN on the deal.
Bharti has been talking to banks about a $5-6.5 billion loan to back the merger, banking sources told Reuters Loan Pricing Corp.
MTN declined to comment about the financing.
“At this stage the company has nothing further to add …. The discussions are still in progress. MTN are in exclusive discussions with Bharti Airtel until 31 July 2009;’ the company said.
Kenya made it a clean sweep at the Berlin Marathon with Sabastian Sawe winning the men’s race and Rosemary Wanjiru triumphing in the women’s.
Sawe finished in two hours, two minutes and 16 seconds to make it three wins in his first three marathons.
The 30-year-old, who was victorious at this year’s London Marathon, set a sizzling pace as he left the field behind and ran much of the race surrounded only by his pacesetters.
Japan’s Akasaki Akira came second after a powerful latter half of the race, finishing almost four minutes behind Sawe, while Ethiopia’s Chimdessa Debele followed in third.
“I did my best and I am happy for this performance,” said Sawe.
“I am so happy for this year. I felt well but you cannot change the weather. Next year will be better.”
Sawe had Kelvin Kiptum’s 2023 world record of 2:00:35 in his sights when he reached halfway in 1:00:12, but faded towards the end.
In the women’s race, Wanjiru sped away from the lead pack after 25 kilometers before finishing in 2:21:05.
Ethiopia’s Dera Dida followed three seconds behind Wanjiru, with Azmera Gebru, also of Ethiopia, coming third in 2:21:29.
Wanjiru’s time was 12 minutes slower than compatriot Ruth Chepng’etich’s world record of 2:09:56, which she set in Chicago in 2024.