Sistema and RCom discussing Indian merger

Indian operator Reliance Communications and Russian investment group Sistema are holding “exclusive discussions” over a possible merger of their Indian operations.

Sistema’s SSTL unit, which operates as MTS India, has 8.9 million connections – making it substantially smaller than RCom, which has 109.5 million.

According to Sistema, the discussion is currently “indicative and non-binding in nature”, meaning that a deal is far from certain.

If an agreement is reached however, the deal will consist of a stock swap. Reports have suggested that SSTL would take a small holding – less than 10% - in the merged unit unless it decides to invest more for a larger share.

Sign-up to our weekly newsletter

Keep up-to-date with all the latest news, articles, event and product updates posted on Developing Telecoms.
Subscribe to our FREE weekly email newsletters for the latest telecom info in developing and emerging markets globally.
Sending occasional e-mail from 3rd parties about industry white papers, online and live events relevant to subscribers helps us fund this website and free weekly newsletter. We never sell your personal data. Click here to view our privacy policy.