Sources:says
“The deal is all set, agreed and legally ready to be signed,” the source saidThe deal, which will be the largest in the global telecom space, will be subject to South African government approval after which it will be signed and will require sanction from 75 per cent of shareholders present and voting in both companies. Once the swap deal goes through, Bharti-MTN will have over 200 million subscribers, making it the third largest mobile company in the world behind Vodafone and China Mobile. Questions were raised earlier this month about the deal after the South African government (which indirectly holds over 21 per cent in MTN) said it was unwilling to sacrifice the telecom company’s “South African character” and raised the issue of dual listing as a compromise ahead of a merger.Senior officials from the South African government are visiting India this week to meet officers in the finance ministry, Reserve Bank of India and the Securities & Exchanges A dual listed company (DLC) involves two listed companies that have different sets of shareholders but share ownership of a single business operation..Allowing DLCs would entail substantial changes in India’s foreign exchange and stock market lawsThe South African government also stated that it was willing to accept the DLC structure as "the best policy option” to the initial proposal for primary listing of the merged entity (Bharti-MTN), as well as that of MTN Group in South Africa.Board of India (Sebi) to discuss this issue.pranab mukarjee,finance minister of india wrote a letter to south africa government that all the discussions are taking place with the indian government regarding DLC.On Bharti’s alternative plan is if the Indian government does not allow for dual listing, which is permitted in South Africa, the spokesperson said: “We don’t want to comment on a hypothetical situation -- we will cross the bridge when we come to it.”
thats the reason its called off immediately for the reason of problems in dual listing
