Under the agreement Sistema Shyam will hold 10 per cent of Reliance Communications’ fully-diluted equity capital.
Following the deal, Reliance Communications is expected to garner nearly 90 lakh customers to subscriber base while its revenues will increase by around Rs 1,500 crore.
Presently, Reliance Communications has a customer base of around 11.8 crore.
The merger gives Reliance Communications access to valuation spectrum while in the future the Russian telecom giant company Sistema may increase stake in the company.
The deal will also extend the validity of Reliance Communications’ spectrum in in 8 circles by a period of 12 years from 2021 till 2033.
Meanwhile, Reliance Communications will have to pay installments related to for Sistema Shyam’s spectrum acquisition, amounting to Rs. 392 crore per annum for the next 10 years.
Sistema Shyam Tele Services is a joint venture between Russian telecom giant Sistema and the Shyam Group of India.
Sistema Shyam wireless biz to be acquire by RCom
