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“We’ll be looking at that over the coming weeks. It was our plan,” Pash said in prepared remarks.
While Pash said the government will review the rules for making the changes over the next 12 months, he did not elaborate.
“There are many provisions in the act that, for example, can have an effect on a company’s ownership structure,” Pash also said, adding there are many sections of the act that give the government the right to review those changes.
This would include changes in company composition rules, where the government has the ability to change the composition of the company of which the stock was originally purchased.
Pash had earlier said that changes in the rule that are pending with the finance ministry would also be reviewed over the coming months.
Pash had earlier expressed his displeasure on the way in which the finance ministry has been dealing with the matter and has been refusing to comment on the matter.
According to a government spokesperson, the notification on the proposed merger of Ambanis and Telstra was submitted recently to cabinet.
Under the proposed resolution, the combined entity would be incorporated under the name Telstra Communications Australia (Telstra) Limited and could be formed with the approval of the Finance Minister and the Attorney General.
A meeting of the Telstra board would also be called at the company’s headquarters to consider a plan to acquire the remaining 50.8 per cent stake in Telstra, which stands at 29.8 per cent.
The proposed transaction would be structured such that the shareholders retain a majority of the shares, with the remaining 49.2 per cent for Telstra.
“What we’ve got here is that Telstra is going to be the parent for Telstra and that gives us a significant advantage in terms of having a parent company,” Pash said, adding the company would continue to operate as a standalone unit.
“We will not be moving out of the market,” he said.
Telstra had earlier indicated that it was looking at the merger as a way of enhancing its profitability.
“It’s a difficult situation for Telstra and it would be reasonable for them to think that this acquisition will help strengthen their position within the industry,” Pash said.
Pash did not specify if they would also have to share
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