Bharti-MTN deal: SA team meets regulators

A delegation of South African government officials today met representatives from market regulators and the Union finance ministry on the issue of allowing dual listed companies, a key element of the Bharti-MTN merger talks.

The meeting, which took place at the Securities and Exchange Board of India office in the Bandra Kurla Complex, was also attended by officials from the Reserve Bank of India and the finance ministry. K P Krishnan, joint secretary in the ministry, Usha Narayanan, executive director, Sebi, and Salim Gangadharan, chief general manager, RBI, were among those present.

A Press Trust of India report said the South African delegation comprised top officials from its National Treasury and the South African Reserve Bank.

While the finance ministry would have to take a policy decision on the issue, RBI’s views on capital account convertibility would need to be ascertained, too, as dual listed companies would require amendments to the Foreign Exchange Management Act and capital convertibility rules. Amendments to the Companies Act are also required.

The talks come days ahead of the latest deadline for conclusion of talks, of September 30.

Yesterday, Finance Minister Pranab Mukherjee had said the government was in favour of the deal but it had to be looked at in the context of the existing legal framework.

Under the announced scheme of arrangement, Bharti Airtel was to acquire a 49 per cent economic interest in MTN. In return, MTN would acquire a 25 per cent economic interest in Bharti Airtel and MTN shareholders would acquire another 11 per cent.