While Bharti Airtel may be tight-lipped about the exact nature and scope of its interest in MTN, there is little doubt as to the importance the company is placing on the ongoing negotiations, reportedly for a 51% stake at a cost of $19 billion.
Just how crucial MTN is in Bharti Airtel?s global gameplan can be gauged by the composition of the team currently in London for talks with the South African telecom major?s group president & CEO, Phuthuma Nhleko. The team is led by Bharti Airtel chairman & managing director Sunil Mittal and includes group managing director & CFO Akhil Gupta as well as president-enterprises services David Nishball.
According to industry sources, Bharti has offered Nhleko the post of global wireless head, should the acquisition materialise. That would make him the architect of Bharti?s expanding global footprint and pitchfork him to head of operations in India. Clearly, Nhleko?s track record of overseeing MTN?s operations in 21 countries across Africa and the Middle East is being seen as a major factor in offering him charge of the entire wireless business.
Currently, Manoj Kohli, who is Bharti Airtel?s president & CEO, heads the telephony business. In all likelihood, Nhleko will be brought in at a higher level than Kohli. The company is also looking at creating an integrated management structure, whereby the group?s lead directors would also find place on MTN?s board.
Much, however, will depend on how Bharti Airtel structures the deal?a task that will be handled by Gupta, the company?s financial brain, who has handled several major negotiations in the past. They include outsourcing pacts with IBM for IT and managed network services with Ericsson and Nokia. Gupta will also be responsible for raising funds, upon which hinges Bharti?s ability to acquire MTN, which has been valued at around $39 billion. His options are largely through debt. The company could also explore private equity placements, a fresh equity offer?including a rights offer?divestment in its tower business and partnering Singtel.
Nishball, the president of enterprises services, is also a key inclusion to the negotiations as he oversees the undersea cable networks and enterprise customers, both domestic and global. In the event of Bharti picking up a controlling stake in MTN, his role is expected to increase exponentially.