Indian mobile operator of the financial system "Systems" can become part of Reliance Communications
Negotiations began on the merger of Indian Sistema Shyam TeleServices Ltd. ( SSTL ) with Reliance Communications . The merger is planned to be carried out through the exchange of shares. SSTL is a subsidiary of Sistema ’s Russian financial group. SSTL operates in nine counties in India under the MTS brand and provides CDMA communications services.
Not yet made a final decision. It will be known only after the financial and legal verification.
Sistema owns 56.68% of the company. Indian Shyam Group owns 24%, Rosimushchestvo - 17.14%. The rest belongs to minority shareholders.
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Otkritie FC analyst Alexander Vengranovich suggests that after the transaction, control will pass to Reliance, and Sistema will have a minority stake. It is worth noting that, as a result of the transaction, SSTL debts and losses will be deconsolidated.
Reliance is the fourth largest mobile operator in India. At the end of Q1, its share was 11.3% of the Indian mobile market. The SSTL share was 0.9%. There are about 863 million subscribers in this market.
There are 11 operators in the Indian mobile market, and the share of the largest of them ( Bharti ) does not exceed 23.3%. Therefore, the merger of SSTL with the Indian operator will be a new step towards overcoming the fragmentation of the market, Interfax reports.
Many experts believe that this is a reasonable step for Sistema. Uralsib analyst Konstantin Belov believes that the operator is a rather problematic asset, and the Indian market is too saturated and competitive, Vedomosti reports.
Shareholders of the operator were waiting for him to still be able to break even. Since 2007, Sistema has spent about $ 3.5 billion on a subsidiary, but it is still unprofitable.
Net loss in the first quarter of 2015 increased by 25% compared to the first quarter of last year and amounted to 3.9 billion Indian rupees ($ 61.5 million). OIBDA loss increased by 44% (to $ 20.8 million). The company's debt at the end of March was about $ 560 million.
Not yet made a final decision. It will be known only after the financial and legal verification.
Sistema owns 56.68% of the company. Indian Shyam Group owns 24%, Rosimushchestvo - 17.14%. The rest belongs to minority shareholders.
')
Otkritie FC analyst Alexander Vengranovich suggests that after the transaction, control will pass to Reliance, and Sistema will have a minority stake. It is worth noting that, as a result of the transaction, SSTL debts and losses will be deconsolidated.
Reliance is the fourth largest mobile operator in India. At the end of Q1, its share was 11.3% of the Indian mobile market. The SSTL share was 0.9%. There are about 863 million subscribers in this market.
There are 11 operators in the Indian mobile market, and the share of the largest of them ( Bharti ) does not exceed 23.3%. Therefore, the merger of SSTL with the Indian operator will be a new step towards overcoming the fragmentation of the market, Interfax reports.
Many experts believe that this is a reasonable step for Sistema. Uralsib analyst Konstantin Belov believes that the operator is a rather problematic asset, and the Indian market is too saturated and competitive, Vedomosti reports.
Shareholders of the operator were waiting for him to still be able to break even. Since 2007, Sistema has spent about $ 3.5 billion on a subsidiary, but it is still unprofitable.
Net loss in the first quarter of 2015 increased by 25% compared to the first quarter of last year and amounted to 3.9 billion Indian rupees ($ 61.5 million). OIBDA loss increased by 44% (to $ 20.8 million). The company's debt at the end of March was about $ 560 million.
Source: https://habr.com/ru/post/291576/
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