Dual listing not feasible: Centre

Bharti-MTN deal may face hurdle as their proposal calls for policy change

 
Briefing reporters Commerce and Industry Minister Anand Sharma  said, “At the current juncture a policy shift on full convertibility of rupee is not possible,” adding “As of now nobody is in a position to talk about the policy change on the full convertibility of Rupee. The government will always be supportive of the initiative by an Indian company for an overseas transaction and acquisition.”

However, when it comes to making any change in the overall policy on rupee convertibility the government would take a holistic view, he said.

The government, he said would not take any initiative to push forward acquisition plan of any specific firm, Sharma said.

Under the announced scheme of Bharti-MTN deal, Bharti Airtel is to acquire 49 per cent economic interest in MTN. In return, MTN will acquire 25 per cent economic interest in Bharti Airtel for US$2.9 billion and MTN shareholders will acquire another 11 per cent. For conclusion of the deal the MTN is insisting for dual listing.

Under dual listing securities are listed on more than one exchange for the purpose of adding liquidity to the shares and offering investors a choice on where they want to trade.

The 15-year-old MTN is South Africa’s largest telecom company with over 103 million subscribers in 21 countries.

Sebi, RBI meet SA delegation

A South African delegation met senior officials of Sebi and RBI to discuss matters related to the proposed Bharti-MTN deal, reports PTI from Mumbai.

The meeting, called by the finance ministry to discuss the multi-billion dollar deal, is understood to have deliberated regulatory hurdles holding back the mega deal, including the issue of dual listing.