MTN and India's Bharti Airtel have once again extended the period of exclusivity discussions to the end of next month.
This is the second time the companies have pushed out the time frame for the deal that could see one of them becoming the third largest global mobile operator, next to China Mobile and Vodafone.
MTN's announcement this morning has reassured investors that the talks, which started in late May, are still ongoing. However, market watchers are starting to wonder whether the deal will go ahead.
Chris Gilmour, an analyst with Absa Investments, says the announcement raises questions as to whether the deal will materialise. He says it is "a lot more complicated than any of us had imagined". Gilmour wonders what the hold up is, and says the market is "starved of information on this whole thing".
"There is many a slip between cup and lip," he notes.
The current speculated structure of the deal could see MTN and its shareholders with a 36% stake in Bharti, of which MTN would own 25%. In turn, Bharti will acquire 49% in MTN. However, MTN's shareholders have called for a sweeter deal.
Meanwhile, the uncertainty around the deal has led to international media speculation as to why the deal is taking so long to conclude. Some have indicated South African investors are holding out for a better offer from Bharti, while others say the companies could be pushing for good financing options.
However, MTN has a history of methodical plodding when it comes to large deals and its first round of discussions with Bharti last year were no exception. Talks fell apart in May last year, with Bharti concerned that MTN wanted to create an Indian subsidiary.
The current talks had an initial deadline of 31 July.
Trade volumes on MTN have been relatively low over the last few weeks. However, its value has followed a steady, but marginal increase since the deal was announced.
MTN's share price was down 0.5% from yesterday's close, to R126.31 at the time of publication.
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