The Russian government is likely to finalise its acquisition of a 20% stake in India’s Sistema Shyam for around US$676m in October, according to reports.
The Economic Times claims that the deal, which was approved by the Indian Foreign Investment…
The Russian government is likely to finalise its acquisition of a 20% stake in India’s Sistema Shyam for around US$676m in October, according to reports.
The Economic Times claims that the deal, which was approved by the Indian Foreign Investment Promotion Board late last year, is imminent. It quotes Sistema Shyam CEO Vsevolod Rozanov saying: “Our immediate funding requirements will be taken care of with this investment.”
The company will subsequently look to list the operator on the Bombay bourse.
Sistema owns 74% of Sistema Shyam, which has a pan-India mobile licence.
The deal between the government and the operator is part of a complex scheme to settle India’s outstanding debt dating back to the heyday of the Soviet Union.
The two nations have agreed that Russia can use India’s outstanding rupee debt, some US$2bn, to finance investments in India.