The proposed deal between Bharti Airtel and South Africa’s MTN will require approval from South Africa’s telecom regulator, Independent Communications Authority of South Africa, as well as the Competition Tribunal. In India, the two companies will need clearances from the Department of Telecommunications and the Foreign Investment Promotion Board. Bharti Airtel has also approached the Indian government to clear regulatory issues in order to get the Bharti Airtel-MTN combine listed in India and South Africa. The existing regulatory framework does not allow Indian companies to list on overseas stock exchanges.
Meanwhile, Singapore Telecommunications (SingTel) is contemplating buying Bharti Airtel’s shares from MTN shareholders to maintain its stake at a minimum level of 26 per cent following the deal. The proposed merger could reduce SingTel’s shareholding in Bharti Airtel from 30 per cent to 11-19 per cent.
