Advertisment

Bharti, MTN heads discuss deal with FM

author-image
CIOL Bureau
New Update

BANGALORE, INDIA: Bharti Airtel Chairman Sunil Mittal and MTN Group Chief Executive Phuthuma Nhleko met Finance Minister Pranab Mukherjee on Monday to discuss the proposed merger deal between the two companies.

Advertisment

Both the heads had extended their exclusive talks for a multi-billion-dollar merger for a second time until September 30.

Though the detailed discussion points could not be ascertained, media reports say that the meeting discussed various regulatory issues arising out of the new Foreign Direct Investment (FDI) rules under Press Notes 2, 3 and 4, where the finance ministry's role would be crucial in getting the deal through.

According to a Voice&Data report the Finance Minister is supposed to play a crucial role in clearing the various regulatory hurdles for the potential deal.

Advertisment

Both the company heads also met Corporate Affairs Minister Salman Khurshid.

Khursheed described the meetings as a courtesy call. Around two months ago, Mittal had called on Khursheed. Soon after, the ministry of corporate affairs had issued a crucial clarification on global depositary receipts, or GDRs.

SEBI had also issued an 'informal guidance' to Bharti Airtel to the effect that MTN would be required to make an open offer only if it converted the Bharti Airtel GDRs it receives into equity shares with voting rights.

Bharti proposes to issue 25 per cent equity through GDRs to MTN, while an additional 11 per cent will be held by MTN shareholders.

tech-news