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MMADE BY: MANAVADE BY: MANAV
BADHWARBADHWAR
BHARTI & MTN DEAL
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ON 25th AUGUST 09MTN ceo Phuthuma Nhelko & Bharti
AirtelChairman Sunil Mittal met finance minister
Pranab Mukherjee & minister for corporateAffair Salman
Khursheed for the matter ofissuing a crucial clarification on
GDRs.
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If MTN wants to convert Bharti Airtel GDRsInto equity shares
with voting rights . ItWould be required an open offer. Bharti
Proposes to issue 25% equity throughGDRs to MTN while an
additional 11% willBe held by MTN shareholders.
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ON 28th AUGUST 09Bharti & MTN were close to the
agreementBharti was offering MTN shareholders$13.1billion(nearly Rs
64,200 crore) incash & shares for a 49% stake &Shareholders
will also receive GDR worth
$5.7 billion in total.
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BHARTI & MTN DEAL
On the other hand , MTN is offering Bharti$10.5 billion for 36%
stake in IndianOperator. $2.9 billion will be in cash &
Remaining $7.6 billion will be in shares.The total value of the
deal amounts to$23.6 billion figures announced by the two
Companies.
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BHARTI & MTN DEAL
1. Public investment Corp.ltd , a powerfulbody controlled by
South African govtholds 20% stake in the MTN.
2. Lebanons Mikati family owns 10% inMTN.
3. SingTel holds 45% in MTN.
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ON 10th SEPT 09Bharti & MTN merger reach $24 billionMerger
pact. Bharti was to give $4 billion
To two MTN shareholders , M1 group &Public Investment Corp.
ltd
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SEBI would be changing a key componentOf its takeover norms
.SEBI said thatBuying offshore in GDRs & ADRs with
Voting rights issued by an Indian firmwould have to make an open
offer to buyAn additional shares. MTN will have to pay
$6.6 billion for buying additional 20% stakeIn Bharti to make
open offer.
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Bharti MTN deal hinges on SA stance.
SA stances were demanding for dual listing
Of a merged entity.
75% of MTN shareholders according to south
African law have to Accept all the details &Changes are
Incorporated.
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ON 1st OCTOBER 09 Bharti & MTN deal went off
What went wrong ?
1. Indias inability to allow dual listing of amerged entity that
may have addressed South African concerns.2. SEBI change rule on
GDRs that may have
forced MTN into unexpected additionalexpenditure on making open
offer for Bhartishares.
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BHARTI & MTN DEAL
3. MTN minority shareholders were backingthe deal. Investors
were offered
cash to GDRs as security that means
investors selling other assets to comply with limits.
