SingTel seeking $3 billion to fund Bharti-MTN merger: report

Singapore Telecommunications is talking to banks for $3 billion financing related to the merger between Bharti Airtel, in which it has a 31 per cent stake, and South Africa's MTN Group Ltd, according to a Reuters report citing Basis Point. Its sources said a final size has not yet emerged because the structure of the Bharti-MTN merger has not been finalised.

Bharti, India's leading mobile operator, and MTN had said they were considering an initial deal worth more than $23 billion, under which Bharti would pay cash and shares to end up with 49 per cent of MTN after MTN pays cash and stock for an effective 36 per cent stake in the Indian firm.

The merger could change SingTel's control over the combined entity, but it would remain a strategic partner and significant shareholder.

On Friday SingTel officials said that merger negotiations between Bharti and MTN were ongoing and they could not give comments or updates on the progress. One year ago, when Bharti and MTN were first in talks, SingTel had said it would support Bharti financially in any merger and acquisition activity.

A merger between Bharti and MTN would create a $61 billion telecom giant spanning Africa, Asia and the Middle East.

Meanwhile, Bloomberg reports that South Africa's rand declined, paring its biggest weekly gain in two months, after India's Economic Times said MTN and Bharti, India's largest mobile-phone company, may extend merger talks.

MTN and Bharti Airtel Ltd. may prolong merger talks that were originally scheduled to last until 31 July ''by two to three weeks'' due to the complexity of the deal, the Economic Times reported, citing four people familiar with the transaction. The planned merger may inject as much as 60 billion rand ($7.8 billion) into South Africa's economy, Macquarie First-South Securities said in a note on Thursday.