SEBI may seek more info as Bharti, MTN near $23 bn deal

Market regulator SEBI today said it will seek more information from Bharti Airtel on its proposed USD 23 billion dollar deal and South African telecom giant MTN once there is more clarity on it.

On the exemption given to MTN from open offer now, SEBI Chairman C B Bhave told PTI: "...(it) was under a scheme of advance ruling ... What advise we have given them is correct... whether we will study the deal further and things like that we will see because the deal is not yet done."

Last week, SEBI had said that the South African firm MTN need not make an open offer to Bharti Airtel shareholders in India as its shareholding in the Sunil Mittal-promoted firm would be through Global Depository Reciepts (GDRs).

SEBI said that the open offer will only trigger once the GDRs, issued to MTN and its shareholders by Bharti Airtel are converted into local shares with voting rights.

Asked about the complicated nature of the deal that could be beyond the understanding of common investors Bhave said, "As long as we are satisfied with that, we will allow complication to happen..."

The proposed 23-billion dollar transaction between the largest mobile phone operator in India and the African firm involves a complex structure, according to which, both entities would pay cash and equity to get each other's stake.

Bhave said, "As far complicated deals are concerned it is in the nature of innovation. People will try to make more and more complicated deals, complicated products and so on. What as regulator we need to make sure is that complication is not just for the sake of getting over something else."