Anil Ambani eyeing 40 per cent in MTN: Report

Mumbai: Anil Ambani is reported to be looking to acquire over 40 per cent in the South African telecom major MTN, according to a report in London's Financial Times. Ambani's telecommunications company Reliance Communications (RComm) is in talks with MTN.

Ambani is looking to broker a de-facto takeover of MTN, by swapping most of his 66 per cent shareholding in RComm for a near-controlling stake in the unified merged entity.

According to the report, Ambani is said to be evaluating ways to hike his "in-effect" controlling position in the South African telecom company, reportedly by seeking to persuade the South African mobile operator's shareholders to waive their right to a tender offer.

It had earlier been reported that Ambani would get a 34.9 per cent stake in MTN, since a stake higher than that would trigger an offer to buy out the other shareholders under South African laws.

Reports now suggest that Ambani could be looking at the case for a "whitewash" procedure, by which MTN's shareholders would vote on whether to waive their right to a tender offer. In case the shareholders agree, Ambani could own around 40 or 45 per cent of MTN, reports said.

MTN's largest shareholders are Newshelf, which holds around 13 per cent on behalf of the group's staff, and South African state-owned pension fund Public Investment Corporation, which holds another 13 per cent, according to the report.

The next largest shareholder is M1, a company that holds just under 10 per cent for Lebanon's Mikati family. In May 2008, RComm and MTN had signed up for 45-day exclusivity talks to explore merger possibilities, which had begun on 26 May.