Russia’s Sistema buys into India

27 Sep 2007

Russian conglomerate Sistema has acquired a 10% stake in Indian fixed line telco Shyam Telelink for USD11.4 million. The Russian company had been reportedly scouting around for a local partner for more than a year and had previously tried to pick up a 49% stake in cellular service provider Aircel. As part of the deal, Sistema has the option to purchase a further 41% of Shyam and could even increase its stake to the maximum 74% if it gains approval from the Foreign Investment Promotion Board. Shyam Telelink, which offers basic telephony services in the state of Rajasthan, recently applied for new licences to offer unified access telecom services in 22 other states.

India, Sistema Shyam TeleServices (SSTL, MTS India)