Bharti to use GDRs in MTN bid
India’s Bharti Airtel is considering issuing global depositary receipts (GDRs) to South Africa’s MTN and its shareholders, the market regulator said on Tuesday.
The Security and Exchange Board of India (SEBI) said MTN would need to make an open offer under Indian takeover rules only when the GDRs are converted by the South African firm and its shareholders to local shares with voting rights.
Bharti and MTN have been in exclusive talks that could lead to a merger creating the world’s No. 3 wireless group with more than 200 million subscribers and combined revenue of $20 billion.