New Delhi, July 31 - The Department of Telecom (DoT) is likely to give the nod to Reliance Communications' (RCOM) merger with Russian conglomerate Sistema's Indian telecom unit, Sistema Shyam Teleservices Ltd (SSTL), this week, according to sources. SSTL operates under the MTS brand.
It is learnt that RCOM has paid Rs 390 crore bank guarantee to DoT, plus Rs 10 crore spectrum payment. According to sources, the merger deal was valued at around Rs 5,000 crore. With this merger, RCOM is set to gain extended validity of spectrum in eight circles. SSTL's circles include Delhi, Gujarat, Kolkata, Karnataka, Tamil Nadu and Kerala, valid till FY 2033.
When contacted, RCOM declined to comment. SSTL currently has revenue of Rs 1,000 crore with 5 million customers. RCOM on Oct 7, 2016 said it has got the Bombay High Court's approval for its acquisition of SSTL.
"We refer to our letter dated September 30, 2016 and wish to inform you that Hon'ble High Court of Judicature at Bombay has today sanctioned the Scheme of Arrangement between the company and Sistema Shyam Teleservices Limited and their respective shareholders and creditors (Scheme) pursuant to the petition filed by the company," the company said in a filing with the BSE earlier.