Russian conglomerate Sistema JSFC has entered into an agreement with the Russian Federation, represented by the Federal Agency for State Property Management, to acquire 17.14% in Sistema Shyam TeleServices (SSTL), as per a press statement. However, financial details have not been disclosed.
SSTL is a joint venture between Sistema, the Russian government and India-based Shyam Group and operates its telecom services under the MTS brand.
Sistema already owns around 56.7% stake in the unit.
The Russian Federation had acquired 17.14% of SSTL shares in March 2011 and simultaneously concluded an option agreement with Sistema to sell the shares back to the company after five years for $777 million or the market value—whichever is higher—determined by an independent valuator.
Under the agreement, payment for shares will be made to the Russian federal budget in instalments over five years as follows: 30% in 2016, 25% in 2017, and 15% each in 2018, 2019 and 2020.
SSTL has operations in Rajasthan, Delhi, Gujarat, Uttar Pradesh (West), Kolkata, West Bengal, Kerala, Tamil Nadu and Karnataka telecom circles offering CDMA technology based telecom services. It is pushing its non-voice or data services in the country.
Last year in November, Anil Ambani-led Reliance Group's telecom firm Reliance Communications Ltd (RCOM) had agreed to acquire the wireless business of SSTL through a stock swap for an undisclosed amount.
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