Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: articles on VAT and GST in India :: form 3cd :: TDS :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARD :: VAT Audit :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: empanelment :: ACCOUNTING STANDARDS :: TAX RATES - GOODS TAXABLE @ 4% :: ARTICLES ON INPUT TAX CREDIT IN VAT :: VAT RATES
 
 
« Mergers and Acquisitions »
  IBBI pitches for market driven mechanism for mergers, acquisitions
 Air India disinvestment: Govt invites applications from investment bankers, law firms
 Govt seeks advisers for Air India disinvestment
 India Inc's M&A value dips 46 percent in August: Grant Thornton
 Deals of the day-Mergers and acquisitions Sep 12, 2017,
 Deals of the day-Mergers and acquisitions Sep 5, 2017
 Nationalised Banks Exempted From CCI Approval For Mergers
 Deals of the day- Mergers and acquisitions Aug 29, 2017,
  NCLT process will cleanse the system; another Swachh India in the making
 Understanding Mergers & Acquisitions in India
 Acme, Inox explore exit from renewable energy projects won at record low tariffs

New SEBI rules cloud Bharti & MTN deal
September, 23rd 2009

Officially, it was a routine announcement by the capital market regulator on changes to the takeover code. But the timing was such that it raised fresh questions on the planned mega telecom alliance between Bharti group and South Africas MTN.

The Securities and Exchange Board of India (SEBI) on Tuesday announced new norms that make it mandatory for entities acquiring Global Depository Receipts or American Depository Receipts (GDRs/ADRs) with voting rights in an Indian firm to make an open offer to minority shareholders if their shareholding crosses the threshold of 15 per cent.

If you are holding an ADR/GDR with voting rights, then you will have to make an open offer, SEBI chairman CB Bhave told reporters in Mumbai.

According to current regulations, any firm acquiring a 15 per cent stake in another company is mandated to make an open offer for an additional 20 per cent in the former.

The GDR and ADR shareholders by themselves do not have voting rights, but the rights are vested with the custodian bank.

Experts said the new norms could materially impact the original contours of the proposed Bharti-MTN deal. Effectively, this means MTN may be forced to buy more stakes than has so far been seen in the deal.

Under the original deal Bharti would acquire 36 per cent of MTNs current shares for $6.9 billion. Besides, MTN will also offer new shares to Bharti. The fresh share issue will eventually take Bhartis shareholding in MTN to 49 per cent.

MTN will acquire a 25 per cent economic interest in Bharti for $2.9 billion and MTN shareholders will acquire another 11 per cent in Bharti through a GDR.

According to the original plan Bharti would have had substantial participatory and governance rights in MTN, while MTN will hve equity and board participation in Bharti.

 There was a fear that the existing norms would have been violated by the explicit nature of the deal. Unlike other transactions, there was a fear that the GDR holders would thrash out an agreement to influence proxy voting through the depository bank, said a source involved in the deal-making, who did not wish to be identified.

The SEBI chairman said the new takeover norms would apply to all future ADR or GDR issues with voting rights, but would not be retrospective.

Bhave  also said it was "too premature" to comment on the issue of dual listings and that the regulator has not received any proposal for dual listing from any entity. The country's takeover laws would apply to all future ADR and GDR issues, but will not have retrospective effect.

A formal takeover code was first introduced in 1997 that set basic rules for mergers and acquisitions and was modified in 2002, making disclosures mandatory at every step before the consummation of a merger and acquisition deal.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Software Development Software Programming Software Engineering Custom Software Development Requirement Based Software Development Software Solutions Software Serv

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions