OREANDA-NEWS. On January 18, 2007 Sistema (LSE: SSA), the largest public diversified corporation in Russia and the CIS, which manages fast growing companies operating in the consumer services sector, announced that it has increased its stake in Shyam Telelink Ltd. ("Shyam Telelink") from 10% to 51%. The additional shares were acquired for a total cash consideration of US$ 46,7 million, reported the press-centre of Sistema.

Sistema acquired a 10% stake in Shyam Telelink for a total cash consideration of US$ 11.4 million at the end of September 2007. In October 2007, Sistema signed a share purchase agreement for the acquisition of an additional 41% stake in Shyam Telelink and a call option agreement, which gives Sistema the right to increase its stake in Shyam Telelink from 51% up to a maximum of 74%. Later in December 2007, Sistema received an approval for the acquisition of the blocking stake in Shyam Telelink from the Foreign Investment Promotion Board (FIPB) of India. As a result of the acquisition of the additional 41% stake, the overall purchase price totaled US$ 58,1 million.

Alexander Goncharuk, President and Chief Executive Officer, commented: "The acquisition of control over Shyam Telelink is in line with Sistema's strategy to enter new perspective markets. We are pleased to have the opportunity to invest in one of the most dynamically developing world markets. Our goal is to create an operator with advanced technologies which is able to meet the growing demand for the majority of telecommunications services."