Johannesburg: South Africa's MTN Group said it was in talks about a potential deal, a day after a banking source said the company was considering raising about $5 billion (Dh18.39 billion) to buy Orascom Telecom assets.
MTN, Africa's biggest mobile phone operator by subscribers, said in a statement yesterday it had entered into discussions that might have a material impact on its share price, but that the talks may not lead to a transaction.
It gave no further details and no one at the company was immediately available for comment.
Trade of the Orascom's global depositary receipts were suspended in London pending a further announcement.
Smaller deals on radar
The source said on Thursday that ownership of Orascom's Algerian unit, Djezzy, would likely change hands in the event of a deal with Egypt's Orascom, and that MTN might also buy some other, smaller African businesses.
An Orascom spokeswoman in Cairo said in an e-mailed response that the company had no comment on MTN's announcement.
The development comes after former MTN suitor Bharti Airtel said late last month it was expanding its presence in fast-growing Africa by acquiring the assets of Kuwaiti telecom Zain on the continent.
"We all know that [MTN] are always looking at things to acquire," said one Cape Town-based analyst who declined to be identified. "This obviously represents an opportunity for them. We really just have to see what price they pay [and] how they structure the deal," the analyst added.
