Sistema’s India Unit to Sell $1.18 Billion of Preferred Shares

Sistema Shyam TeleServices Ltd., the Indian mobile phone venture controlled by Russian billionaire Vladimir Evtushenkov’s AFK Sistema (SSA), will sell 60 billion rupees ($1.18 billion) of preferred shares, doubling its authorized capital.

The non-convertible share issue will not change the voting structure of the unit, the Moscow-based company said in a regulatory filing today following a shareholder’s meeting. Sistema holds 57 percent of Sistema Shyam.

India’s Supreme court last month canceled 21 licenses that the unit won in 2008 as part of a probe into the auctions. Sistema, which says the company has invested more than $3.1 billion, called on the Russian and Indian government to help settle the dispute.

To contact the reporter on this story: Stephen Bierman in Moscow at sbierman1@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.