SSTL and Reliance Communications announce merger

Sistema JSFC, a publicly-traded diversified holding company in Russia and the CIS, announces the signing of binding documents regarding the merger of Sistema’s Indian telecommunications business with business of Reliance Communications Ltd, one of the leading telecom operators in India.

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The signed documentation provides for the demerger of the telecommunication business from Sistema Shyam TeleServices Ltd (“SSTL”) and its merger with the telecommunications business of Reliance Communications Ltd (“RCom”) based on a Merger Scheme to be approved by Indian courts. As a result of the merger, SSTL will acquire and hold a 10% equity stake in RCom. In addition, prior to the transaction’s completion, SSTL plans to pay off existing debt.

 

“The merger of SSTL and RCom’s telecom businesses is a milestone event. Despite the numerous challenges the sector faced in recent years, the combination of two leading data service providers is a clear sign of progress for the Indian telecom industry. We are confident that SSTL’s entry into the equity capital of RCom as a strategic investor will strengthen the competitive position of the combined company and provide subscribers with superior experience by fast-tracking the growth of LTE technology in India. Moreover, we believe the completion of this transaction will serve as an example of growing business ties between Russia and India and encourage other investments between the two countries”, said Mr. Mikhail Shamolin, President and CEO of Sistema.

“We are delighted to welcome Sistema Shyam TeleServices Ltd. as a valued shareholder and partner in Reliance Communications Ltd. The combination of our wireless businesses, through the demerger of SSTL wireless business into RCOM for stock consideration, will generate significant capex and opex synergies for mutual benefit. The Indian data market is witnessing explosive growth, and SSTL’s proven strengths in that space will further enhance RCOM’s capabilities in delivering a superior experience to our valued customers. We are pleased that the addition of SSTL’s valuable spectrum holdings in the 800 – 850 MHz band will strengthen RCOM’s spectrum portfolio, and extend our ability to provide world class 4G LTE services to our customers in 8 important circles in the country till the year 2033”, said Mr. Gurdeep Singh, President & CEO, RCOM Consumer Business.

“We believe this transaction underscores SSTL’s track record in building the fastest-growing data services provider. This is an exciting new chapter for India’s telecom industry and we look forward to leveraging our companies’ combined experience for the development of LTE in India”, said Mr. Sergey Savchenko, CEO of Sistema Shyam TeleServices Ltd.

Following the completion of the transaction, RCom will take responsibility for payment of SSTL’s frequency spectrum licensing fees payable by installments to the Department of Telecommunications of India. An appropriate earn-out mechanism has also been agreed in relation to disputed spectrum contiguity charges claimed by the Department of Telecommunication of India.

The closing of the transaction, which is expected in the second quarter of 2016, is subject to a number of conditions, including obtaining approvals in accordance with SSTL and RCom’s corporate procedures and approvals by Indian regulatory and judicial authorities.

Post closing of the deal, minority shareholders of SSTL will be given an option to exchange their shares in SSTL with the pro-rata RCom shares held by the company.

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76 Comments on "SSTL and Reliance Communications announce merger"

 

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Amlan Bandyopadhyay
November 9, 2015 2:13 pm 2:13 PM

I live at Bolpur,WB.I use mts mblaze ultra wi-fi for more than one and half year.I can easily say that the carrier provides the best wireless internet (speed and availability) service.Go for mts without any doubt.

Jyotirmoy Manna
November 9, 2015 6:14 pm 6:14 PM

Any screenshot available?

Rishi Roy
November 4, 2015 5:38 pm 5:38 PM

As I visit suri regularly and come to Bankura for business, I can say Airtel crumbles in both districts. I also have Aircel and its not that poor in coverage now. But again indoor coverage sucks for both. Thinking of porting to RCDMA

Sayan
November 4, 2015 7:14 pm 7:14 PM

You better port to mts. Mts has much better coverage and cheaper tariff than rcdma

Arif
November 3, 2015 1:52 pm 1:52 PM

exactly what i said. Vodafone is way ahead of airtel in wb interns of network as well as quality. but great to see aircel aggressively expanding there 3G coverage and they r going to launch 4G very soon. i can search aircel 4G network in suri birbhum west bengal . i send a mail regarding that with screen shots to rdb.

Sanjit Roy
November 4, 2015 3:08 pm 3:08 PM

@Arif- Can you tell me about your experience of 2g voice quality of Bharti Airtel at suri?? Please reply!!

Arif
November 4, 2015 10:40 pm 10:40 PM

One word pathetic 3G and 2G coverage. And the voice quality is like i “hello hello sunte pacchis?? Hello hello kichu sunte pacchina. Dara tor Vodafone no a call korchi”.

bibhu
November 6, 2015 12:51 am 12:51 AM

Same thing happens for Airtel and sadly also bsnl at benachity and bhiringi durgapur. In fact shockingly Aircel works better for voice calls. Airtel 3G internet also bad, Bsnl vodafone Reliance Aircel 3G internet much better. Airtel 2G internet better than all 2G internet except Vodafone.

Sanjit Roy
November 5, 2015 1:29 am 1:29 AM

@Arif- Can you tell me from how much time you are facing this 2g poor voice quality issues at suri? Are you able to listen the receivers voice means whenever you listen the voice of someone I think the voice is unclear or like any disturbance type feeling, so tell me is it this you are facing? So please reply, also tell me from how much time you are facing this poor 2g voice quality issues at suri?? Plz

Arif
November 6, 2015 11:53 am 11:53 AM

ami problem ta last 8-9 mas theke face korchi. ami onner kotha sunte pacchi but opposite ar manush amar kotha sunte paina . akta problem holo hotat hote sugnal chole jai.

Sanjit Roy
November 8, 2015 12:35 am 12:35 AM

@Arif- Ekta kaaj koro port code ber koro tar por retention team er phone ashle ea complain register korte bolo ar oder warning diyo je 2g voice quality thik na korle port kore vodafone ea chole jabo ebong jodi improve na kore soti soti vodafone ea port kore nio kintu minimum 90 days wait koro complain ta register hower pore.

Arif
November 8, 2015 9:44 am 9:44 AM

Ami amar primary no onek din aga e Vodafone a port kore neyachi . r kichu jaiasena airtel oder ptoblem thik korlo ki na korlo. Wait korchi Rjio ar jonno.

Sayan
November 5, 2015 7:49 pm 7:49 PM

I travel to different parts of wb very often and I have found that Airtel 2g voice quality is inaudible. Airtel is now a data only operator in West Bengal. None uses Airtel for calling.

Jyotirmoy Manna
November 6, 2015 7:43 pm 7:43 PM

What I feel Kolkata Airtel is ok.

Sanjit Roy
November 8, 2015 12:41 am 12:41 AM

@Jyotirmoy Manna- Do you still get good 2g voice clarity across Kolkata on bharti airtel? Please reply..

JYOTIRMOY MANNA
November 8, 2015 1:14 am 1:14 AM

Not clear as before, but slightly better than vodafone.

Sayan
November 3, 2015 7:04 pm 7:04 PM

It’s good that aircel is planning to launch 4G even in a small town like Suri.

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