OREANDA-NEWS. December 23, 2010. Sistema (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, which invests in, and is a major shareholder of, companies operating in different industries, announced that, as a part of previously announced transaction the Russian government completed the payment for shares of Sistema Shyam TeleServices Ltd. (SSTL), Sistema’s subsidiary in India, which provides telecommunications services under the MTS brand, reported the press-centre of Sistema.

Rosimushchestvo paid the rupee equivalent of USD 600 million for a stake of approximately 17% in SSTL’s share capital. Following the additional share issue, the total stake in the share capital of SSTL owned by Russian parties (Sistema and Rosimushchestvo) will not exceed 74%.
 
SSTL expects to issue the shares to Rosimushchestvo during the first quarter of 2011, subject to the successful completion of a rights issue to SSTL’s Indian shareholders and compliance with all applicable Indian regulatory requirements. Upon final completion Sistema will announce all the relevant details about this transaction.
 
SSTL plans to use the funds to finance the continued development of the company, and in particular to strengthen its leading position in wireless broadband (under EV-DO Rev. A).  The funds will also be used to expand the branded retail network in its current telecommunication circles and to accelerate the launch of operations in a number of new circles.
 
Sistema Shyam TeleServices Ltd. (previously Shyam Telelink Ltd.), established in 1998, launched its full operations in the State of Rajasthan in 2000. The company received the pan-Indian licence for mobile network operations in March 2008, and presently owns right to use frequencies for provision of mobile telephony services in 22 circles  across the country. The company provides telecommunication services to more than 8 million subscribers in 13 circles: Rajasthan, Tamil Nadu (and Chennai), Kerala, Kolkata, West Bengal and Sikkim, Bihar (and Jharkhand), Delhi, Karnataka, Mumbai, Haryana, Maharashtra, Andhra Pradesh and Gujarat. The company provides mobile broadband services under MBlaze brand to more than 400,000 people in 84 cities in India. Sistema owns 73.71% of Shyam TeleServices Ltd. For further information please visit www.mtsindia.in.