MTN seeks shareholders' approval for buyback

MTN Group shareholders will vote on the buyback on June 19, according to a notice for the annual general body meeting sent to members. The notice, however, does not mention a possible equity sale or possible merger of the company.

A resolution on the buyback will have to be approved by two-thirds of the shareholders.

The notice mentioned that Lombard Odier Darier Hentsch & Cie, promoted by Lebanon's former prime minister Najib Mikati, holds 9.82 per cent stake, Newshelf 664 (Proprietary) Ltd holds 13.06 per cent and directors and subsidiaries hold 0.03 per cent in the company. The remainder is held by the public.

According to sources, shareholders are expected to question the company's board on the talks with Bharti, India's biggest private telecom operator, on a possible sale or merger.

There have also been reports that UAE-based Etisalat and Deutsche Telekom are interested in MTN.

MTN is reported to be looking at a 50:50 cash-and-stock deal in a possible merger with Bharti, and the repurchase of shares would enable a share swap in case a deal is struck.

The company is also seeking approval of shareholders for placement of unissued shares now under the control of its directors. That existing authority expires at the forthcoming annual general meeting and must be renewed.

The authority will be subject to the Companies Act and the Listings Requirements of the Johannesburg Stock Exchange Ltd.

When contacted MTN spokesperson Nozipho January-Bardill said: "The annual general meeting will take place on June 19 as originally scheduled. Regarding the talks with Bharti, MTN cannot comment beyond the cautionary announcement the company released on May 5, 2008."