Anil Ambani's Reliance Communications may opt for a secondary listing
in London of the new entity after the planned takeover of the South
African telecom firm MTN to increase liquidity of shares in the global
market.
At present, Reliance is in exclusive talks with MTN with respect to a
potential combination of their businesses.
The exclusivity talks period of 45 days started on May 26. The due
diligence is currently in the final stages and is likely to be
concluded anytime.
Industry sources said MTN top brass including Azmi Mikati, the chief
executive of the investment unit that is MTN's second-largest
shareholder and Phuthuma Nhelko, the chief executive of MTN are
positively inclined to have LSE listing of the merged entity.
However, the combined entity would continue to be listed in
Johannesburg through MTN and in Mumbai through Reliance.
Sources said currently both the companies are working out the swap
ratio and it is understood that Ambani wants to exchange his 66 per
cent stake in Reliance Communications under a mechanism yet to be
agreed for a 34.9 per cent stake in MTN.
The broad contours of the final agreement between them regarding share
swap, modalities are likely to be finalised in the next 10 days, said
industry sources.
MTN's talks with RCom started after Bharti Airtel pulled out of
negotiations with MTN.
Although the value of that MTN stake has yet to be agreed, it could
constitute one of the biggest investments by an Indian company
overseas, alongside Tata Steel's about $12 billion takeover of Corus
last year
Check out the all-new face of Yahoo! India. Click here.
No comments:
Post a Comment