In November, India's leading telecom operator RCom announced acquisition of Sistema's Indian telecom unit in an all-stock deal that will create an operator with 118 million subscribers.

As per the deal, SSTL will hold about 10 percent stake in RCom and pay off its existing debt before closing the deal.

Russian tycoon Vladimir Evtushenkov-controlled AFK Sistema currently holds 56.68 percent stake in SSTL while the Russian government owns 17.14 percent interest. Shyam Group has 23.98 percent stake and the rest is owned by small investors.

SSTL offers mobile telephony services under the MTS brand across nine telecom circles. The deal will give RCom access to spectrum or airwaves in the 850 Mhz band that can be used for 4G services which it plans to start by the year-end.

Also, it will be able to extend the validity of its licence by 12 years in eight high revenue-generating circles of Delhi, Gujarat, Tamil Nadu, Karnataka, Kerala, Kolkata, UP (West) and West Bengal.

While SSTL will pay off its existing debt, RCom will assume the liability to pay the government installments for SSTL's spectrum, amounting to Rs 392 crore per annum for the next 10 years.

Sistema had ventured into the Indian telecom space in 2007 when it bought 10 percent stake in Shyam Telelink by paying USD 11.4 million. The stake was raised subsequently.

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