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Johannesburg - China's largest telecom operator, China Mobile, is said to be looking for a partner to acquire assets worth about $2bn from its South Africa-based peer MTN Group (MTN), Chinese media reported on Monday.
Among the articles carried by Chinese media, the Hong Kong-based newspaper the South China Morning Post reported that China Mobile was looking to buy the minority assets of MTN Group in Iran, Syria and Sudan.
China Mobile has held talks with telecom operators that have a significant market share in Africa and Middle East, including France Telecom, Kuwait-based Zain, Egypt's Orascom and Etisalat of Dubai.
The Chinese telecom operator, which has been working on overseas expansions, acquired Pakistani Paktel for US$460 million in 2007.
MTN's planned deal with India-based mobile telecom carrier Reliance Communication was in the meantime aborted last year.
MTN Group presently holds a 49% stake in MTN Irancell, an 85% stake in MTN Sudan, and a 75% stake in MTN Syria.
The multinational has to sell its 20% stake in MTN Irancell before July 2009, according to an agreement MTN Group inked with the Iran government in 2005.
The 20% of MTN Irancell held by MTN Group is valued at $1.4bn roughly, and the MTN Sudan possessed by MTN Group worth about $420m or so, pointed out analysts.
Operating revenue obtained by the three MTN units accounted for only 16% of MTN Group's total in 2008.
At 15:36 shares in MTN were trading 2.12% or R2.24 lower at R103.40 on the JSE.
- I-Net Bridge