A site in dire need of a clever tag line
28 June 2017 21:17 (South Africa)

Dual listings in Bharti/MTN deal nixed

MTN_logo

The proposed MTN/Bharti telecommunications tie-up, which would create the world’s third largest cellphone company, will not include dual listings because of India’s concerns about the convertibility of the rupee. This is something of a slap in the face for SA government which has been advocating a dual-listed structure to maintain some semblance of a South African character to the joint entity. What this decision means for the deal is not absolutely clear, but suggests the transaction will become a mostly if not purely cash affair. The original plan was for a partial share swap and cash deal, with a further portion of Bharti to list on the JSE. As a result, Bharti would own 49% of MTN, and MTN 15% of Bharti. A further 10% of Bharti would be listed on the JSE. That plan is now dead. Finance department officials from SA went to India to encourage Indian authorities to consider a dual-listed structure, which is not allowed under existing Indian laws. The firms extended the deadline for their exclusive talks twice and the current one expires tomorrow.

Get overnight news and latest Daily Maverick articles






Do Not Miss