MTN said to be eyeing India again

South Africa’s MTN could enter the India mobile market, with reports suggesting that the majority shareholder in Indian mobile network, Idea Cellular, Aditya Birla Group, is in talks with MTN over a possible sale of a stake in the company.

Citing three people with knowledge of the matter, BusinessWeek said that the talks are at an early stage, and might not lead to a deal. Birla Group is also talking with telecom companies in the US and Europe about a deal for the stake in Idea, said two of the people.

The Birla Group owns 47 per cent of Idea Cellular, with 19 per cent held by Malaysia’s Axiata Group and the remainder free floated.

Any deal with MTN would likely involve a mix of cash and shares, said one of the people.

Speculation about the tie-up in India is the first potential deal on incoming CEO Sifiso Dabengwa’s watch, following his assumption of the top job at MTN Group as of April 1.

Former president and CEO, Phuthuma Nhleko tried and failed to merge the South African cellco with Indian operators Reliance and Bharti Airtel in the last couple of years of his tenure.