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MTN may take Bharti stake through GDRs

MTN may take Bharti stake through GDRs
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First Published: Mon, Jun 15 2009. 11 42 AM IST
Updated: Mon, Jun 15 2009. 11 42 AM IST
New Delhi: South Africa’s MTN may buy a proposed 25% stake in India’s Bharti Airtel via global depositary receipts (GDRs) issued by the Indian firm, The Economic Times reported, citing a top Bharti official.
Separately, one banker involved in the deal told the agency that the GDR route was “only one of the options considered” to avoid an open offer for another 20%. Under Indian rules, a stake buy of 15% triggers a public offer.
Under the initial proposed deal announced last month, aimed at a merger of the two firms, MTN would take a 25% interest in Bharti for $2.9 billion plus new MTN shares equal to about 25% of its existing shares. MTN shareholders would take another 11% of Bharti.
The companies have said Bharti would buy about 36% of existing MTN shares at 86 rand each, plus half a newly issued Bharti global depositary receipt, to be listed in Johannesburg, for each MTN share.
Bharti would end up with a total 49% stake in MTN in a complex deal.
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First Published: Mon, Jun 15 2009. 11 42 AM IST
More Topics: Airtel | Bharti | MTN | stake | Corporate News |