The Department of Telecom (DoT) is likely to give the nod to Reliance Communications (RCom ) merger with Russian conglomerate Sistema s Indian telecom unit, Sistema Shyam Teleservices Ltd (SSTL), this week, according to sources. It is learnt that RCom has paid Rs 390 crore bank guarantee to DoT, plus Rs 10 crore spectrum payment. Building a network that helps maximize returns from future technologies. According to sources, the merger deal was valued at around Rs 5,000 crore. Also Read - Vodafone CEO Nick Read to visit India this week; will seek bailout: ReportAlso Read - BSNL agrees to lay off 54,000 employees, but waiting for elections to be over: Report
With this merger, RCom is set to gain extended validity of spectrum in eight circles. The SSTL circles include Delhi, Gujarat, Kolkata, Karnataka, Tamil Nadu and Kerala, valid till FY 2033. When contacted, RCom declined to comment.
The SSTL currently has revenue of Rs 1,000 crore with 5 million customers. RCom on October 7, 2016 said it has got the Bombay High Court s approval for its acquisition of SSTL. ALSO READ: Sistema Shyam shareholders approve merger with Reliance Communications
We refer to our letter dated September 30, 2016 and wish to inform you that Hon ble High Court of Judicature at Bombay has today sanctioned the Scheme of Arrangement between the company and Sistema Shyam Teleservices Limited and their respective shareholders and creditors (Scheme) pursuant to the petition filed by the company, the company said in a filing with the BSE earlier.