RCom receives go ahead from bourses on Sistema deal

Reliance Communications (Rcom) today said it has received a go-ahead from the stock exchanges to acquire Sistema Shyam Teleservices Ltd (SSTL), which operates under the MTS brand.

“We wish to inform you that we have received observation letter from BSE Ltd and National Stock Exchange of India Ltd (NSE). The company and SSTL are proceeding to file necessary application with the Bombay High Court and Rajasthan High Court respectively for approval of the scheme,” Reliance Communications said in a BSE filing.

In November last year, RCom had announced acquisition of Sistema’s Indian telecom unit in an all-stock deal. After the deal, the entity will have 118 million subscribers. As per the deal, SSTL will hold about 10 percent stake in RCom and pay off its existing debt before closing the deal.

The deal will give RCom access to spectrum or airwaves in the 850 Mhz band which can be used for 4G services. Besides, it will be able to extend the validity of its licence by 12 years in eight circles of Delhi, Gujarat, Tamil Nadu, Karnataka, Kerala, Kolkata, UP (West) and West Bengal.

RCom is also in discussions with another telecom operator Aircel for acquiring their wireless business.