Reliance Communications Ltd (R-Com) on Thursday said it has received stock exchange approval to proceed with the acquisition of Sistema Shyam Teleservices Ltd (SSTL), the local unit of Russia’s Sistema JSFC.
The Anil Ambani-controlled company, India’s fourth largest mobile-phone services provider, said in a statement to stock exchanges that the company has received a so-called observation letter from BSE Ltd and National Stock Exchange of India Ltd on the “scheme of arrangement”.
“The company and Sistema Shyam Teleservices Ltd (SSTL) are proceeding to file necessary application with the Bombay High Court and Rajasthan High Court respectively for approval of the Scheme (of Arrangement),” R-Com said in its filing.
On 2 November, R-Com had said it is buying SSTL in a deal valued at Rs.4,500 crore in stock and payments to the government for spectrum allotted to Sistema.
R-Com had signed a definitive agreement with the Russian company to acquire SSTL in a transaction under which the latter will take a 10% stake, worth Rs.2,082 crore in R-Com.
The transaction is expected to be closed in the second quarter of 2016, subject to regulatory approvals.
The transaction potentially marks the start of long-awaited consolidation in the world’s fastest growing Indian telecom industry, in which a dozen mobile services carriers are competing for market share.