Indian court backs Reliance Communications' takeover of SSTL
09 February 2016 | Alan Burkitt-Gray
Reliance Communications’ takeover of MTS India is set to go ahead after approval from the Bombay High Court.
Under the deal, RCom will take over Sistema Shyam TeleServices, which operates under the MTS brand, and the Russian industrial group Sistema, which is the biggest shareholder in SSTL, will have a 10% stake in RCom, which is controlled by Indian businessman Anil Ambani.
RCom’s shareholders will meet on 8 March to consider the all-stock deal, under which RCom will get access to SSTL’s spectrum, licensed for 18 years, for LTE services.
Sistema is separately the controlling shareholder in Russian operator MTS, but management is separate from MTS India.
RCom is not connected with Reliance Jio, ownded by Anil Ambani’s brother Mukesh, but the two companies are negotiating spectrum deals.