MTN likely to acquire Bharti Airtel stake through GDRs

South African telecom major MTN’s proposed 25 per cent stake acquisition in Bharti Airtel is likely to be through global depository receipts (GDRs), which will be listed on the Johannesburg Stock Exchange. According to the existing plan, MTN will buy 25 per cent stake in Bharti Airtel, while another 11 per cent will be bought directly by MTN shareholders.

Bharti, in turn, will acquire 49 per cent stake in MTN through a complex stockand-cash deal which is estimated to be worth over $23 billion. JP Morgan, BNP Paribas, HSBC and Barclays are in talks with Bharti Airtel to provide $500 million each as a part of the $4 billion cash portion of the deal. Standard Chartered Bank, Bharti Airtel’s financial adviser, may also provide funding of up to $1 billion.