Russian billionaire Vladimir Yevtushenkov, owner of conglomerate Sistema, has said he is discussing a possible joint venture in India with Reliance Communications (RCom).
Yevtushenkov told Reuters that talks with several parties regarding “business…
Russian billionaire Vladimir Yevtushenkov, owner of conglomerate Sistema, has said he is discussing a possible joint venture in India with Reliance Communications (RCom).
Yevtushenkov told Reuters that talks with several parties regarding “business expansion” in India are ongoing, but did not elaborate, adding that “there is nothing much to say”.
His comments came after a Bloomberg report claimed that RCom, owned by billionaire Anil Ambani, is in talks to acquire Sistema’s local unit Sistema Shyam TeleServices (MTS India). According to this report, the billionaires met recently to discuss combining their Indian wireless operations. The deal would reportedly involve a share swap and not cash, although details are yet to be finalised.
However, Yevtushenkov was cited by Reuters saying he has no plans to sell MTS India – the ninth largest of the country’s dozen or so mobile network operators.
Local media reports have previously claimed that MTS India could merge with Tata Teleservices and Aircel, two of the other medium-sized players in the crowded and highly competitive local mobile market.
RCom, the fourth-largest player by subscriber numbers, has declined to comment on the matter. The operator plans to sell non-core assets, including its subsea cable and pay TV units, to help cut its debt pile of nearly US$6bn.
Last December, MTS India strategy head Ranjan Banerjee told a local paper that the company was open to local acquisition opportunities as it sought to reduce debt via equity financing. He was cited saying the company was “willing to tap the right opportunity for inorganic growth” once the government provided greater clarity on M&A rules.
