SSTL and RCom complete merger transaction
Moscow, 31 October 2017 – Sistema PJSFC (“Sistema" or "the Corporation”) (LSE: SSA, MOEX: AFKS), a publicly traded diversified Russian holding company, announces that it has completed the merger of its Indian telecommunications business with Reliance Communications Ltd (“RCom”), one of India's leading telecommunications operators. The merger has been approved by all relevant Indian regulators and courts.
As part of the transaction the telecommunications business of Sistema's subsidiary, Sistema Shyam TeleServices Ltd. (“SSTL”), including its licenses and obligations with respect to the 800-850 MHz frequency range, has been transferred to RCom. SSTL now owns a 10% equity stake in RCom following a new share issue of the Indian operator.
If the Department of Telecommunications and the courts of India confirm that SSTL's spectrum can be used for deployment of the 4th generation networks without any additional payments, SSTL may become entitled to an earn-out payment from RCom.
In accordance with the approved transaction structure, SSTL's minority shareholders will have the right to convert SSTL shares into RCom shares in proportion to their equity stakes in SSTL as part of a tender offer to be announced by the end of January 2018.
Sistema President Mikhail Shamolin said: “We welcome the completion of this deal, which marks another chapter in consolidation of the Indian telecom sector. As a shareholder of RCom we are confident that this merger will help strengthen the operator's position in the industry and deliver on its strategic plans.”
For further information, please visit www.sistema.ru or contact:
Tel.: +7 (495) 730 66 00
Tel.: +7 (495) 228 15 32
This announcement contains inside information. Full name and position of person making the announcement – Yury Krebs, Director, Investor Relations.
Sistema PJSFC is a publicly traded diversified Russian holding company serving over 150 million customers in such sectors as telecommunications, retail, paper and packaging, agriculture, high technology, banking, real estate, pharmaceuticals, tourism and healthcare services. The company was founded in 1993. Its revenue in 2016 reached RUB 697.7bn; its total assets equalled RUB 1.1tn as of 31 December 2016. Sistema's global depositary receipts are listed under the “SSA” ticker on the London Stock Exchange. Sistema’s ordinary shares are listed under the “AFKS” ticker on the Moscow Exchange. Website: www.sistema.ru