Don’t see regulatory obstacle in MTN deal: Mittal

Bharti has said it does not forsee any regulatory obstacle to its proposed mega telecom deal with South African MTN as the FDI in the company is well below the prescribed 74 per cent limit.

“The government allows 74 per cent (FDI in telecom sector) and we are below that,so,I don’t think there is any issue,” Bharti Enterprises Vice-Chairman and MD Rajan Mittal said when asked if he sees any regulatory hurdles. On Bharti’s commitment to the deal,Mittal said,”We have made our intent very clear … I don’t think anybody should doubt that … now there are issues that need to be put across … so we will have to wait for that.”

The Sunil Mittal-controlled Bharti Airtel and MTN group’s proposed USD 23-billion mega deal,if materialised,would be the largest global telecommunications transaction. Bharti on last Monday said that it has reopened talks for acquiring 49 per cent stake in MTN and in turn MTN would acquire an approximate 36 per cent economic interest in the Indian telecom major,of which 25 per cent would be held by MTN and the remaining by its shareholders.

The two companies signed an agreement to hold exclusive talks for a deal that could include USD 10 billion in cash and USD 13 billion in shares and see emergence of a combined entity of USD 20 billion in terms of revenue and 200 billion subscribers globally.