Reliance Communications (RCom) is in advanced stages of discussions with Russian billionaire Vladimir Yevtushenkov-controlled Sistema to merge its Indian operations with itself, Business Line reports.
Referring to the merger proposal of Sistema Shyam TeleServices Ltd’s (SSTL) Indian operations, Reliance Group Chairman Anil D Ambani told shareholders at RCom’s AGM that the discussions were at an “advanced stage”.
SSTL, which offers CDMA services under the brand MTS, is a joint venture between Sistema of Russia and Shyam Group of India. The companies expect to sign and announce the transaction within the next few weeks, he said, adding, the merger would be through stock swap.
“The proposed merger is highly value accretive for RCom, as it will, in eight important circles, extend the validity of the 850 spectrum by a significantly long period of 12 years, all the way up to 2033,” Ambani said.
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