Skip to main content

RCom buys Sistema's Indian operations

As part of the deal, Sistema will acquire 10% stake in Reliance Communications
Mumbai, Nov 2:  
Marking the first major acquisition in recent times, Reliance Communications (RCom) has entered into an agreement to acquire Russian conglomerate Sistema JSFC’s Indian telecom business.
The acquisition will be by stock and takeover of SSTL’s spectrum in instalments of ₹392 crore a year for the next 10 years.
According to sources, this pegs the deal size at about ₹4,500 crore.
Under the agreement, Sistema Shyam Teleservices Ltd (SSTL), which provides telecom services under the MTS brand, will be merged with RCom. Following the acquisition, SSTL will get a 10 per cent stake in RCom. Promoter shareholding in RCom will come down to 54 per cent.
Significant synergies

“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,” said Gurdeep Singh, President and Chief Executive Officer, Consumer Business at RCom.
However, there will be no board seats or veto rights available to SSTL.
“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,” said Mikhail Shamolin, President and CEO of Sistema.
On its part, SSTL intends to pay off its existing debt before the closing of the transaction.
The company has also agreed for a payment or an earn-out mechanism for the Department of Telecommunications (DoT) disputed spectrum contiguity charges.
Rationale of the deal

On completion of the acquisition, which is subject to certain conditions and regulatory approvals, RCom will get about nine million customers and ₹1,500 crore in annual revenue.
In addition, the company, controlled by billionaire Anil Ambani, will get superior 850 MHz band spectrum held by SSTL, which is suited for 4G LTE services.
Also, getting the spectrum eliminates future cash outgo for RCom in eight circles till 2021.
Further, it will also extend RCom’s spectrum validity in the band for another 12 years (from 2021 till 2033).
Shares in RCom ended up 6.18 per cent at ₹79.90 on the BSE, which closed 0.37 per cent down on Monday. 




Sandip Ginodia , Director

We deal in over 60 unlisted companies with 15 years of experience .
For latest prices visit : www.abhisheksecurities.com/unlisted.htm / call : 09830271248 .








Labels:

Comments

  1. Unknown19 January 2016 at 02:14

    Nice info about RC dot com. Do you know about Online IPO investment India , because online facility in investment saves our valuable time.

    ReplyDelete
  2. Unknown25 January 2016 at 00:34

    Nice blogging ! keep posting. Post something more about R-Com related Online IPO investment India.

    ReplyDelete
  3. Abhishek Securities9 February 2016 at 05:09

    Thank you! Your kind words keep us going.
    Most certainly.!!

    ReplyDelete
  4. Abhishek Securities9 February 2016 at 05:10

    Thank you!
    Right Away!

    ReplyDelete

Post a Comment

Please leave your name and email id along with the comment .
Get the updates from this blog direct to your inbox . Fill in your email id on the home page.

Popular posts from this blog

Reliance's JioMart is averaging half a million orders per day; WhatsApp driving growth

  JioMart , Reliance's online-to-offline commerce  platform that launched in May , has scaled up rapidly, riding on the pandemic-fuelled digital acceleration. The service, which went   live in 200 cities across India, is currently processing an average of  500,000 orders per day. " We can go even higher on peak days",  Jio Platforms CEO   Kiran Thomas  revealed at the Facebook for Fuel India 2020 event. He said, "JioMart is empowering millions of  kiranas  and small merchants through the simple and secure platform of WhatsApp, and linking them to Reliance Retail's pan-India supply chain. We expect to grow manifold in future, and are optimistic about enabling new cohorts of users and making it easier for them to shop for daily essentials."  "Customers are transacting seamlessly on JioMart and the  conversational nature of the service  enabled by WhatsApp has made people adapt to it intuitively," he added. Reliance also stated th...
Post a Comment
Read more

Zomato, Swiggy score 1/10 on working conditions for their workers – ET Retail

Some of India's biggest startups have ranked near the bottom when it comes to  working conditions  for their gig  workers , according to a report released Wednesday. While  Swiggy ,  Zomato  and Uber India scored 1/10, Urban Company and Flipkart’s logistics arm EKart scored the highest 8/10 and 7/10, respectively, ‘ Fairwork India Ratings  2020: Labour Standards in the Platform Economy’  showed . The report assessed the companies on five principles: fair play, fair conditions, fair contracts, fair management, and fair representation. Deepinder Goyal, chief executive officer of Zomato Media Pvt. Ltd., acknowledged the ratings on Twitter. “Zomato ranked at the bottom of 2020 Fairwork India scores. We knew we had things to work on, but we didn’t know that there is so much room for improvement.” The company takes full responsibility and “will leave no stone unturned to perform better in the rankings next year,” he added. Zomato received a 4/10 in ...
Post a Comment
Read more

Times Internet posts 24% revenue jump to Rs 1,625 Cr in FY20

  Times Internet has posted a 24% jump in its annual revenue in the financial year ending March, recording Rs 1,625 crore in revenue in FY20. In its annual report, the company  said the revenue growth has been adjusted for seasonality of cricket events. In FY19, it had posted revenues of $196 million. The company has registered a surge across its revenue streams i.e. advertising revenue, subscribers, transaction revenue and gross merchandise value (GMV) in the last fiscal year. While advertising revenue grew 22% with faster growth in music and video, overall subscribers to Times Prime grew 62%.  Times Internet’s annualized GMV in transacting businesses grew 68% with a 75% jump in net revenues, said the company in its annual report. Its subscription and transactional businesses include Times Prime, Gaana Plus, TOI+, ET Prime, and Gourmet Passport.  Times Prime also crossed 2 million subscribers last year. “We broadened our media strategy beyond news, and we focused on...
Post a Comment
Read more