 India’s market regulator, the Securities and Exchange Board of India (SEBI) approved Bharti Airtel’s request to exempt South Africa’s MTN from making an open offer over the two companies proposed deal for a merger.
Bharti Airtel had reasoned that its equity expansion will only be in the form of global depository receipts (GDRs) that will be listed on the Johannesburg Stock Exchange and hence asked for exemption.
SEBI while agreeing to the logic said that MTN will have to make an open offer only if the GDRs are to be converted to local shares with voting rights. |