Home  Issuers' Corner  Press Releases  Financial Corporation "Sistema"
CLOSE

Press Releases > Financial Corporation "Sistema"  all about the company

company search
all press releases
all Financial Corporation "Sistema" press releases

Financial Corporation "Sistema"

March 31, 2011

The Russian government makes equity investment into Sistema Shyam TeleServices

Moscow, Russia – March 31, 2011 – Sistema (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, today announces an increase in the share capital of Sistema Shyam TeleServices Ltd. (SSTL), Sistema’s subsidiary in India which provides telecommunications services under the MTS brand, by means of an additional share issue.

Moscow, Russia – March 31, 2011 – Sistema (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, today announces an increase in the share capital of Sistema Shyam TeleServices Ltd. (SSTL), Sistema’s subsidiary in India which provides telecommunications services under the MTS brand, by means of an additional share issue.

 Following the placement of additional shares with the Russian government and investors in India, SSTL increased its share capital by INR 28,894.5 million (approximately US$ 647 million). The Russian government, represented by Rosimushchestvo (the Federal Agency for State Property Management), acquired a 17.14% stake in SSTL for INR 26,988 million (approximately US$ 600 million). The Russian Federation’s portion of the transaction was financed with funds held in Indian rupees, which represented Indian government debt to the Russian Federation.

 Following the completion of the secondary share issue, Sistema’s stake in SSTL amounts to 56.68%, while Indian investors own 26.05%.

 In accordance with the agreement between Rosimushchestvo and Sistema, Rosimushchestvo has a put option to sell its stake in SSTL to Sistema during a one year period beginning five years after the purchase of shares in SSTL. Sistema has an obligation to purchase SSTL shares from the Russian government for the higher of US$ 777 million or market value determined by an independent valuator. Under the terms of the agreement, until the put has been exercised or expires, Sistema has agreed not to reduce its stake in MTS below 50%+1 share. The agreement does not provide for any specific consequences in connection with this provision (i.e., no accelerated exercise of the put, etc.), and the parties could agree to revisit and revise this provision.

 SSTL plans to use the proceeds from the secondary offering to further strengthen its position in the mobile broadband market, to expand its mono-brand retail network in existing telecommunications circles, and to launch services in new circles.

 Sistema Shyam TeleServices Ltd. (previously Shyam Telelink Ltd.), established in 1998, launched its full operations in the State of Rajasthan in 2000. The company received the pan-Indian licence for mobile network operations in March 2008, and presently owns right to use frequencies for provision of mobile telephony services in 22 circles  across the country. The company provides telecommunication services to more than 10 million subscribers in 19 circles. The company provides mobile broadband services under MBlaze brand to over 500,000 people in more than 130 largest cities in India. Sistema owns 56.68% of Shyam TeleServices Ltd. For further information please visit www.mtsindia.in.

 

 

 

Search by industry

Agriculture, Foresty and Fishing | Chemicals | Engineering | Ferrous Metals | Financial, Insurance & Real Estate | Food & Kindred Products | General Construction | Information Technology | Media & Publishing | Non-Ferrous Metals | Oil & Gas | Pharmaceuticals | Power Industry | Precious Metals and Diamonds | Telecommunications | Transportation | Wholesale & Retail Trade

Search by alpha index

A B C D F G H I K L M N O P R S T U V W X Z



Site Map
© RUSTOCKS.com
Privacy Statement | Disclaimer