Presented by -

YMurtaza Sadriwala -64

YMustafa Hotelwala-67
YNawaf Ghansar -70
YNirav Shah-73
YOmkar Redkar-76
YQasim Ladiwala-80
Y 4ounded in 1995 as Bharti Tele-Ventures in New Delhi,
India.
Y Listings: The Stock Exchange, Mumbai (BSE)
The National Stock Exchange of India Limited (NSE).
Y The Airtel subscriber base according to TRAI: 24.2%of
the total GSM+CDMA mobile connections with 110
million subscribers.
Y ï
  - DS$ 6.73 billion
Y !    - DS$ 1.59 billion
Y (

  - DS$ 12.28 billion
Y (
  125 million subscribers by 2010.
Y Major mobile telephone network operator
based in South Africa.
Y Launched in 1994.
Y Core operations in 21 countries.
Y Listed in the Johannesburg Stock Exchange.
Y 90.7 million subscribers at the end of 2008.
Y Brand of the Year award at the CBC ² African
Business Awards.
Y Dnderwent a 40% increase in its revenue in
2008 amounting to R102,5 billion (i.e. 12.3
billion DSD).
 About the Merger*
Y Tie-up worth nearly $50 billion between two telecommunication
companies, Bharti Airtel in India and MTN Group in South Africa.
Y Bharti Airtel will acquire a 49 percent stake in MTN whereas MTN
would take a 36 percent stake in the Indian company.
Y The merger would be a merger of equals as the market capital and
the number of subscribers for both are approximately same.

Why the merger fell apart in 2008

Y MTN turned Bharti·s takeover plan upside down, proposing to take
over Bharti instead.
Y MTN requested about DSD 50 billion for its shares which would
have made Bharti Airtel its subsidiary.
Y The MTN shareholders would have voting rights over Bharti.
Y The deal was called off by Sunil Mittal.
 BENE4ITS O4 THE MERGER

Y Would make Bharti Airtel the 1st Indian multi-national

telecom giant.
Y Joint venture would have the 3rd largest number of
subscribers in the world (about 200 million).
Y Annual revenue would be over $20 billion.
Y Introduction of new schemes in the market.
Y Prices may fall.
Y Current employees would get new opportunities.
Y Merger may also generate employment.
 Dual Listings
Y DLC structure is a series of contractual arrangements between two
listed entities.
Y Operate as if they were a single economic enterprise.
Y Retain their separate legal identities, tax residencies and stock
exchange listings.
Y Shareholders of each entity are in substantially the same position in
terms of votes, dividends and capital returns.

Problems Associated with Dual listing in India!

Y The Companies Act.
Y The 4oreign Exchange Management Act (4EMA).
Y It will need permission for trading of shares in a foreign common
currency like the DS Dollar.
Y Capital Account Convertibility(CAC).
Y The Listing agreement .
Y Sebi·s takeover code.
 ADR's & GDR's
Shares Indian Stock Buyers
Exchange
(Indian Co.) (Indian Investors)
(BSE, NSE, Etc)

4oreign Stock Comply with the Listed on stock

Exchange Policy of those Stock exchanges NRI Investors
Exchanges
(NYSE, NASDAQ)

Deposits its shares

Bank issues Receipts Receipts are listed on
with a bank located in NRI Investors
against these shares stock exchange
that country

ADR GDR
(American (Global Depository
Depository Receipts) Receipts)
 Current Status Of The Merger
Y South African government officials visited India last
week.
Y SA president is in talks with these officials to see if
the need for dual listing can be waived off.
Y SA·s insistence to preserve Johannesburg listing.
Y Dual listing will help preserve jobs.
Y The deadline for negotiations is 30th September
2009.
Y Short extension of the deadline is only possible if
SA gives a go ahead for the deal.
Y Examples of dual listed companies in South Africa
are Mondi & Investec Bank.