Govt Commences Delisting of MTNL for Merger With BSNL: Report

The Government has started the process of merging Mahanagar Telephone Nigam Limited (MTNL) with Bharat Sanchar Nigam Limited (BSNL). To facilitate the same, the centre has started the process of delisting Mahanagar Telephone Nigam Limited (MTNL) from the stock exchanges.

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As a first step, MTNL will be first delisted from the foreign exchange, according to a Financial Express Report, which cited people familiar with the matter. MTNL first listed its American Depository Shares (ADSs) in the New York Stock Exchange (NYSE) in 2001 that were taken down later and, consequently, listed on the OTCQX International market in 2013.

The merger process of BSNL and MTNL is expected to take around two years, with the proposal to merge the operational business of MTNL with BSNL. According to the proposed plan, this includes wireline, wireless, and the enterprise business, along with the operational assets of MTNL’s telecom business. Furthermore, shares of MTNL will be delisted from Indian stock exchanges as well, with the Government acquiring 90% of the shares of MTNL.

MTNL is Divided into Three Parts for Merger

Mahanagar Telephone Nigam Limited (MTNL) will be divided into three parts per the merger plan. The first will comprise MTNL’s operations, staff and operational assets. The second part will include MTNL’s other assets and liabilities, including the spectrum MTNL holds. The third segment will consist of Mahanagar Telephone Mauritius (MTML) operations, which are currently operationally profitable. In addition, MTNL’s liabilities will not be transferred to BSNL, and BSNL has appointed Deloitte as a consultant for the process.