Hurdles in MTN’s merger in Bharti Airtel

In the process of Bharti Airtel acquisition of MTN, a new hurdle has come. According to Indian regulatory rule foreign holding in a telecom company could not exceed 74%. As per sources MTN wants 50% of the deal should be done in cash and the rest through share-swap. In case Bharti pays $25 billion cash, it will have to issue fresh shares worth $25 billion to MTN shareholders to complete the deal. Bharti holds around 65% of the holding with foreign entities. If Bharti does the insurance of its fresh shares worth $25 billion to MTN’s shareholders then it will exceed the foreign holding in the join entity to 78% which is not against the Indian FDI norms
The merging is also facing a problem other than the above. As per African norms 20% of merged entity’s shareholding should be with black investors. But in this merger if cash component exceeds then proportion of black investors might go doen below statutory requirements.
The historic deal between Bharti and MTN is now in the hands of banker who can only make it ensure that the deal goes through without violating regulatory norms.

Bharti opts for Full take over

India’s largest mobile operator, Bharti Airtel, has opted for a full fledged take over of South African telecom giant MTV. If this happens than it would make Bharti the world’s sixth largest mobile operator, boasting over 130 million subscribers.
The market is filled with rumours for the dates when this will happened. Some say it will be on May 17, the World Telecom Day, while others offered May 23 as an acquisition date which is the birthday of Bharti boss Sunil Mittal. Mittle’s driving licence and mobile phone numbers have “23” figures so the take over could happen on 23 also. Whatever are the dates but when ever it happens, it will create a history in Indian telecommunications. The MTV is asking for $50 billion while Bharti is reportedly willing to go upto $45 billion.

Airtel ties up with Apple for iphone

India’s largest company in telecommunication has announced a tie-up With US based Apple Inc to bring the popular GSM-based iphone in the country.
According to reliable sources, Airtel may start offering iphones around Diwali festival to its over 65 million GSM-based subscribers. The telco said in a statement, “ Bharti Airtel has signed a deal with Apple to bring the iphone to India later this year”.
The ties-up between the duo will be beneficial for the consumers who can now avail the products from legal channels and avoid opting for the grey market.