By Editor on October 2, 2009 · Leave a Comment
Reliable sources have revealed that the Bharti-MTN merger’s fate was sealed three weeks before it was called off on SEP 30, 2009.
It is learnt that the South African governments treasury wrote to MTN on September 11 demanding that the merged entity be domiciled in South Africa (a request earlier made in mid August as well) AND that it should be listed in both countries, OR the deal would not be blessed (South African government’s pension fund, Public Investment Corp, holds 21% stake in MTN).
Members of the South African treasury had visited India on September 24 to understand the regulatory and legal framework of Indian laws and deliberate upon hurdles to the deal. The Indian side revelaed that the dual listing structure would result in huge tax losses for India among other factors.
The South African treasury insisted on a parallel listing via the trust route. Such parallel listing would mean creating two trusts, both listed, one in India and one in South Africa. Both trusts would mirror a share swap deal. Such parallel listing would have been compliant with existing Indian laws.
It turns out that the deal fell through because of South Africa’s political compulsions!
P.S: The investment banks involved in the deal – Bank of America, Merrill Lynch and Deutsche Bank from MTNs side and Standard Chartered & Barclays from Bharti’s side will not be making the potential 24 to 48 Million dollars had the deal gone through.
Filed under Mobile ·
Tagged with Bank Of America, Barclays, Bharti, Government, India, merger, MTN, political compulsions, South Africa, south african government, Standard Chartered, trusts
By Editor on November 2, 2006 · Leave a Comment
Canadian operator BCE reported a drop in third-quarter net profit on one-time costs to restructure its business. Earnings per share fell to CAD 0.36 from CAD 0.48 a year ago, hurt by charges for staff cuts and setting up the regional operator Bell Aliant. EBITDA managed a rise to CAD 1.840 billion, up by CAD 23 million from a year ago on the back of cost reductions, while revenues rose 0.3 percent to CAD 4.422 billion. In the residential segment, sales were up slightly while operating profit fell due to higher amortisation and pension costs. In business, sales and operating profit were both up, helped by lower costs and solid demand from SMEs and for ICT services. Wireless posted a double-digit rise in sales and EBITDA, driven by a focus on postpaid subscriber growth. BCE confirmed its full-year outlook for 1-3 percent sales growth, a stable EBITDA margin and EPS, excluding one-time items, of CAD 1.80-1.90. The company noted however that it will reconsider its proposal to convert to an income trust following a government proposal to tighten the tax treatment of trusts.
Source- http://www.telecompaper.com
