Bharti-MTN deal: Dual listing not possible now, says Sharma

In what could be a dampener for the proposed $23-billion Bharti-MTN deal, the government today said dual listing, as sought by South Africa, may not be possible as it needs a policy change on rupee convertibility.

A policy change on full convertibility of rupee is not possible at present, Commerce and Industry Minister Anand Sharma said here.     

"At this stage nobody is in a position to talk about the policy change on convertibility. However, the government will always be supportive of the initiative by an Indian company for an overseas transaction and acquisition," Sharma said responding to queries on Bharti-MTN deal.     

Even Finance Minister Pranab Mukherjee had said on Wednesday that "we welcome the deal but it should in the context of existing laws of the land".      

The two companies are in exclusive talks till September 30, and this is the second time in a little over one year that the two firms have come back to the negotiating  table after a futile attempt last year.

According to original terms of the transaction, Bharti will acquire 49 per cent in MTN and the South African firm will acquire 36 per cent economic interest in Bharti.       

The fate of the deal also hinges on whether the South African firm is exempted from making an open offer as market regulator SEBI revised the takeover norms on Tuesday.