Reliance Communications, MTN may go for London listing post merger: report
10 Jun 2008
Mumbai: Reliance Communications is likely to go for a secondary listing in London after the planned merger with South African telecom firm MTN, to make the shares more visible in the global market and increase currency, the Times reported, citing sources.
The combined entity would also continue to be listed in Johannesburg through MTN and in Mumbai through Reliance.
Reliance, which has been in 45-day exclusive talks with MTN starting 26 May, is in the final stages of a due diligence.
The two companies are working out the swap ratio and reports say Reliance Communications chief Anil Ambani may exchange his 66 per cent stake for a 34.9 per cent in MTN.
MTN top brass, including Azmi Mikati who heads the investment company holding the second-largest stake in MTN, and the company's chief executive Phuthuma Nhelko also favour an LSE listing of the merged entity, reports said.
Sources said the two companies are likely to finalise the agreement regarding share swap and other modalities in the next 10 days.
Although the value of the MTN stake has yet to be agreed, it could constitute one of the biggest investments by an Indian company overseas.