In return, MTN will acquire 25 percent interest in the indian firm for $2.9 billion and MTN shareholders will acquire another 11 percent.

The 15-year-old MTN is South Africa's largest telecom company with over 103 million subscribers in 21 countries.

The deal fell through last year. Then renewed talks were announced in May and have already been extended twice. The latest deadline expires Sep 30.

The South African government had earlier said it would not compromise on maintaining the South African character of MTN. As a compromise, it is agreeable to a dual listing of the telecom giants, which would ensure that the company does not get delisted from the Johannesburg Securities Exchange (JSE).

Accordingly, it also approached the Indian counterparts to consider a dual-listed structure, which is not allowed under the existing Indian laws.