Russian conglomerate Sistema completed its merger with Indian telecommunications major Reliance Communications on Tuesday. The agreement was approved by Indian regulators and courts. The Russian company’s subsidiary, Sistema Shyam TeleServices has been transferred to Reliance Communications as part of the deal.
“We welcome the completion of this deal, which marks another chapter in consolidation of the Indian telecom sector,” Sistema President Mikhail Shamolin said. “As a shareholder of RCom we are confident that this merger will help strengthen the operator’s position in the industry and deliver on its strategic plans.” SSTL has acquired a 10% equity stake in RCom.
Shares of the Anil Ambani-headed Reliance Communications closed at a flat rate of Rs 17.15 on Tuesday after the merger was announced.
SSTL’s spectrum may be used for 4G networks without additional payments if the Indian governments and courts concerned give it the necessary clearance, a statement by RCom said, The Hindu reported.