News
Indian operator to hold court-convened shareholder meeting on 8 March.
Reliance Communications will hold a shareholder meeting next month regarding its planned takeover of Sistema Shyam Teleservices (SSTL), having been instructed by the courts to do so.
The Indian telco on Tuesday published a letter to the Bombay Stock Exchange informing it that it will hold a court-convened meeting on 8 March.
At the meeting, shareholders will vote on the proposed scheme of arrangement for the SSTL buy.
RCom submitted its plan to acquire SSTL to the Bombay High Court last month, having agreed the takeover in November.
Under the terms of the deal, Russia’s Sistema, which owns SSTL, will take a 10% stake in RCom. RCom will also assume SSTL’s spectrum licence fee obligations, which amount to payments of 3.92 billion rupees (€54 million) per year for the next 10 years to the Department of Telecommunications (DoT).
RCom is India’s fourth-largest mobile operator with just over 110 million customers and a market share of 11.08% at the end of September, according to the Telecom Regulatory Authority of India (TRAI).
SSTL, which operates under the MTS brand name in India, is much smaller, with operations in just nine telecoms circles.
It had 8.36 million customers at the same date.
