OREANDA-NEWS. On September 26, 2007 Sistema (LSE: SSA), the largest private sector consumer services company in Russia and the CIS, announced that it has acquired a 10% stake in Shyam Telelink Ltd., an Indian telecommunications operator, for a cash consideration of US$ 11,4 million, reported the press-centre of Sistema.

Sistema intends to increase its stake in Shyam Telelink Ltd. to 51% after receiving approval from the Foreign Investment Promotion Board (FIPB) of India. Upon receipt of this approval, the overall value of the deal may reach US$ 58,1 million.

Shyam Telelink Ltd. obtained a unified license to provide fixed-line and cellular services to corporate and residential customers in the Indian state of Rajasthan with a population of approximately 62 million people. The company also controls 100% of the local internet service provider Shyam Internet Ltd. Shyam Telelink Ltd. owns a developed telecommunications infrastructure which includes 4,000 kilometres of fiber-optic lines.

Alexander Goncharuk, President and Chief Executive Officer of Sistema, commented: "The acquisition of the stake in Shyam Telelink is in line with our strategy to enter rapidly developing markets and further integrate Sistema in the global business community. We consider India as one of the most attractive markets with a high growth potential. We are pleased to be the first Russian company to enter the Indian telecommunications sector."