Freshfields acts on high-stakes India mobile deal

Freshfields Bruckhaus Deringer has secured a major role on talks between Indian mobile phone provider Bharti Airtel and South Africa's MTN over a cross-shareholding deal that could lead to a full merger.

Freshfields is advising MTN, with a team led by partners Bruce Embley (pictured), Pratap Amin and Simon Weller. Freshfields has handled a number of matters for MTN including the company's $5.53bn (£3.6bn) acquisition of Dubai-based Investcom in 2006.

South African practice Webber Wentzel, which has offices in Johannesburg, Cape Town and London, is local counsel to MTN.

The resumed talks were announced Monday (25 May) in a statement released by Bharti, India's largest mobile phone operator. The merger is valued at $23.8bn (£15.8bn).

Talks between the two companies fell apart about a year ago, with differences over the proposed structure of the deal put forth by MTN.

The two companies are now attempting to push through a deal in which Bharti will take a 49% interest in MTN, while MTN will acquire 36% of Bharti. "The broader strategic objective would be to achieve a full merger of MTN and Bharti as soon as it is practicable to create a leading emerging market telecom operator," the Bharti statement read.

Bharti is being advised by Indian law firm AZB & Partners and South Africa-based practice Bowman Gilfillan.

If a full merger is confirmed, it will result in the world's third-largest mobile phone operator and a combined company with revenues of $20bn (£13bn) and a customer base of more than 200 million across Africa, Asia and the Middle East.

Bundeep Singh Rangar, the chairman of IndusView Advisors, a cross-border advisory firm, said: "The companies are buying international scale and growth in the world's fastest-growing telecoms markets of India and Africa. This one deal will almost match the value of the 280 cross-border mergers and acquisitions last year at $25bn (£16.6bn). It marks the grand entry of India as an acquirer in the international telecoms industry, just as previous years saw India Inc. buy into international steel, auto and IT industries."

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