RCom-MTN combine may seek London listing

Reliance Communications (RCom) and MTN Group are exploring the possibility of a secondary listing on the London Stock Exchange (LSE) for the merged entity, in case the proposed reverse merger takes place.

According to news reports in the international media, the secondary listing is to increase the liquidity of shares in the global market. At present, RCom is in exclusive talks with MTN for a merger.

Reports said the MTN top brass, including Azmi Mikati, CEO of M1 (the second-largest shareholder in the South African company) and MTN CEO Phuthuma Nhelko, are inclined to have a LSE listing for the merged entity. The combined entity would continue to be listed on the Johannesburg Stock Exchange through MTN and on the Bombay Stock Exchange through RCom.

However, when contacted RCom officials declined to comment on the development.

Anil Ambani-led RCom was in talks with MTN to form a telecommunications company valued at about $70 billion, with over 116 million subscribers. MTN has over 68 million subscribers across 22 countries, while RCom has around 40 million users in India.

Industry sources had earlier stated that the companies were closing in on a reverse merger, under which RCom would become a subsidiary of the MTN Group and its chairman Anil Ambani will hold 28-30 per cent in the merged entity. This would make Ambani