Dual listing would require full convertibility of Re: Pranab
As the talks between Bharti and MTN are in progress, the government today said dual listing, as sought by South Africa, would require full convertibility of rupee and the same is being looked into.india Updated: Sep 23, 2009 19:42 IST
As the talks between Bharti and MTN are in progress, the government on Wednesday said dual listing, as sought by South Africa, would require full convertibility of rupee and the same is being looked into.
"Dual listing requires full convertibility of rupee and that has to be looked into," Finance Minister Pranab Mukherjee said on the sidelines of the 108th AGM of the Merchants' Chamber of Commerce.
Mukherjee said that he had talks with his South African counterpart on the issue of Bharti Airtel and MTN tie-up where Bharti would acquire 49 per cent share in MTN while the latter will hold 25 per cent in the newly created combine.
"We welcome the deal, but it should be in context of existing laws of the land. These have to be kept in mind," he said.
If the deal goes through, the newly formed combine would be the world's third largest mobile phone company.
Mukherjee's comments on dual listing comes a day after the market regulator SEBI revised the takeover norms making it mandatory for any company to come up with an open offer if it buys 15 per cent or more ADR/GDRs of another firm.
The two contentious issues of dual listing and open offer by MTN have come up when the exclusive period of talks between the two firms is expiring on September 30.