The Competition Commission of India (CCI) has approved the proposed merger of Sistema Shyam Ltd's operations into Reliance Communications, paving way for the first major consolidation in the intensely competitive sector since 2009.
ET had first reported in May last year, that RCom was in talks with SSTL for a possible takeover in an all-stock deal, worth around Rs 4,500-5,000 crore that could give the latter's shareholders a stake of around 10 per cent in the merged entity.
Prior to the approval, the Bombay High Court has admitted an application seeking a merger between RCom and SSTL, the telecom unit of Russia's Sistema JSFC, after which the the court had asked RCom to convene a meeting of shareholders on March 8.
The deal will give India's fourth-largest carrier access to airwaves in the 850 Mhz band which can be used for 4G services that it plans to start later this year. Moreover, it will be able to extend the validity of its licenses by 12 years in eight high revenue generating circles like Delhi, Gujarat, Karnataka and Tamil Nadu. On the other hand, holders in SSTL, which has been struggling to grow its CDMAbased telecom business, will get to be a part of a stronger company.
ET had first reported in May last year, that RCom was in talks with SSTL for a possible takeover in an all-stock deal, worth around Rs 4,500-5,000 crore that could give the latter's shareholders a stake of around 10 per cent in the merged entity.
Prior to the approval, the Bombay High Court has admitted an application seeking a merger between RCom and SSTL, the telecom unit of Russia's Sistema JSFC, after which the the court had asked RCom to convene a meeting of shareholders on March 8.
The deal will give India's fourth-largest carrier access to airwaves in the 850 Mhz band which can be used for 4G services that it plans to start later this year. Moreover, it will be able to extend the validity of its licenses by 12 years in eight high revenue generating circles like Delhi, Gujarat, Karnataka and Tamil Nadu. On the other hand, holders in SSTL, which has been struggling to grow its CDMAbased telecom business, will get to be a part of a stronger company.
The deal will give India's fourth-largest carrier access to airwaves in the 850 Mhz band which can be used for 4G services that it plans to start later this year. Moreover, it will be able to extend the validity of its licenses by 12 years in eight high revenue generating circles like Delhi, Gujarat, Karnataka and Tamil Nadu. On the other hand, holders in SSTL, which has been struggling to grow its CDMAbased telecom business, will get to be a part of a stronger company.
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 .
Email : ginodiasandip1@gmail.com
Comments
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.