The Russian government has invested about US$600m in Sistema Shyam Teleservices (SSTL) in return for a 17% stake in the company, according to a statement.
SSTL is a joint venture between Russian operator Sistema, which owns about 74% of the company, and…
The Russian government has invested about US$600m in Sistema Shyam Teleservices (SSTL) in return for a 17% stake in the company, according to a statement.
SSTL is a joint venture between Russian operator Sistema, which owns about 74% of the company, and Indian conglomerate the Shyam Group, which holds the remaining shares.
The statement explains that following an additional share issue, expected to take place in the first quarter of 2011, Sistema’s total stake in SSTL will not exceed 74%.
Sistema Shyam, which has licences in all of India’s 22 circles, will use the funds to expand its retail network and accelerate the launch of operations.
This investment is part of a scheme aimed at settling India’s US$1bn outstanding debt with the former Soviet Union by financing investments in India.
SSTL needed a decision on the investment before it could submit an IPO proposal, as it required accurate information about its shareholding structure.
