MTN to introduce local shareholders

India's Bharti Airtel is believed to be in negotiations for acquiring or merging MTN with itself, with industry sources expecting a formal deal to be tabled this week. However, they believe that this will not impact Bharti Airtel's plans.

In a statement, MTN said that the Group and Amaracos Holding will enter into a joint-venture agreement for the stake sale. MTN will continue to be responsible for managing the operations of MTN Cyprus and Amaracos will provide MTN Cyprus with significant local insight into the Cypriot market.

 

"This transaction is intended to broaden the ownership of MTN Cyprus and further reaffirms MTN's commitment to enabling greater local representation in the countries in which it operates. MTN Cyprus will now have a wider distribution platform and will also be well positioned to provide fully converged telecommunications services to our valued customers in Cyprus," MTN Group President and CEO Phuthuma Nhleko said.

Amaracos is a Cypriot company owned by Shacolas Group's Cyprus Trading Corporation (51 per cent), a pre-eminent listed Cypriot trading group, and Germanos Cyprus Ltd (49 per cent), a company belonging to Greek businessman Panos Germanos.

MTN Cyprus will also acquire Infotel Ltd, a handset retailer in Cyprus trading as Germanos and Otenet (Cyprus) Ltd, an internet service provider (ISP) in Cyprus.

These acquisitions will offer strong distribution support to MTN Cyprus and enable MTN Cyprus to offer fully converged telecommunications services to the Cypriot market.