Sistema Shyam TeleServices Ltd. said it expects to receive an investment of more than $600 million from the Russian government as early as September.
“By the end of third quarter or fourth quarter we realistically might be closing” the deal after the Russian government approves the proposal, Vsevolod Rozanov, chief executive officer of Sistema Shyam, told reporters in New Delhi today. The investment will give Russia a stake of about 20 percent in the Indian wireless operator, Vsevolod Sementsov, a spokesman at AFK Sistema, said by phone from Moscow.
Moscow-based Sistema owns a 74 percent stake in the venture with India’s Shyam Group, and has licenses to provide mobile-phone services in all the nation’s 22 service zones. The company, which started services in the world’s second-largest wireless market in March 2009, has signed up more than 5 million customers, the company said in an e-mailed statement today.
Sistema Shyam said Dec. 10 that its shareholders had approved a proposal to issue new shares to the Russian government, as well as existing Indian shareholders, in order to raise funds to expand its services.
Shareholders approved the issue of 662.7 million shares to the Russian Federal Agency for State Property Management of the Russian Federation at 49.31 rupees ($1.1) apiece, according to the statement on its website.