Sistema Shyam confirms IPO plans, Sistema mulls further investment Indian new entrant Sistema Shyam Teleservices (SSTL) confirmed that it would decide whether to list by the end of this year or the beginning of next year, according to local reports. A…
Sistema Shyam confirms IPO plans, Sistema mulls further investment Indian new entrant Sistema Shyam Teleservices (SSTL) confirmed that it would decide whether to list by the end of this year or the beginning of next year, according to local reports. A spokesman for Sistema confirmed that the listing would be for at least 10% of SSTL, adding that although a deadline had been set for next year, Sistema Shyam’s board would have the final say.
Vsevolod Rozanov, president and CEO of the Indian telecom services joint venture between Russian firm Sistema and Indian conglomerate Shyam Group, was also quoted saying that the Russian government would be open to investing about $620m in SSTL, in return for a 20% stake in the company.
A spokesman said that the previous US$670m figure had been scaled back due to fluctuations between the Russian rouble and the Indian rupee. He nonetheless confirmed that the investment would be above US$600m.
The investment deal between the Russian government and the operator is part of a scheme aimed at settling India’s outstanding debt with the former Soviet Union. Under an agreement between the two countries, Russia is able to use India’s outstanding debt, about US$1bn, to finance investments in India.
A decision on the investment must be made before the listing, to ensure that the transaction?s stakeholder information is accurate.
Sistema Shyam, which is owned by Sistema (73.71%), Shyam Group (23.79%) and minority shareholders, operates in 11 of India’s 22 telecom circles and has 6.5 million subscribers, according to Sistema.
