Following in the footsteps of Vodafone, Russia’s Sistema is also planning to increase its stake in its Indian mobile unit.
The conglomerate has sought approval from the Foreign Investment Promotion Board to boost its investment in MTS India to beyond…
Following in the footsteps of Vodafone, Russia’s Sistema is also planning to increase its stake in its Indian mobile unit.
The conglomerate has sought approval from the Foreign Investment Promotion Board to boost its investment in MTS India to beyond 74%, a spokesman for the mobile operator said.
MTS India is 74%-owned by Sistema and the Russian government while India’s Shyam Group has a 24% stake. The rest is held by individual investors.
According to reports, Sistema is planning to increase its interest in tranches. The spokesman declined to discuss details.
MTS India, the country’s ninth-largest player, had most of its 2G licences cancelled in 2012 in the aftermath of the 2G scam. It has since bought back frequencies in eight service areas.
Just weeks ago, Vodafone assumed full ownership of Vodafone India by buying the 15% it did not already own for US$1.7bn.
The British telco first expressed interest in buying out the minority partners in September last year, following the removal of a 74% ceiling for foreign investments in telecoms operators.
Since then, several foreign telcos invested in India have been rumoured to be considering a similar move. Telenor has been one of them.
Sigve Brekke, the Norwegian company’s head of Asia, told the Economic Times in March that Telenor was considering acquiring all the shares it does not own in the mobile operator “now that we know it’s allowed”.
But he added that there was “no immediate plan to do this”.
Conversely, Japan’s NTT Docomo is planning to exit its 26% holding in Tata Docomo, allegedly because of its declining performance in India’s 12-operator market. Local joint venture partner Tata Group is expected to buy out the unit.
