Indian mobile network operator Sistema Shyam TeleServices (SSTL), which offers services under the MTS India banner, has announced that it has issued 54,73,12,918 equity shares to the Russian government after the latter’s USD600 million investment in December 2010. Following the completion of the transaction the Russian Federation now holds a 17.4% stake in SSTL, while Russian services conglomerate Sistema’s holding in the cellco has fallen to 56.68%. India’s Shyam Group meanwhile now owns 23.98% of the company, while the remaining 2.2% is held by public investors.
Commenting on the development, SSTL president and CEO Vsevolod Rozanov noted: ‘We at SSTL are delighted to have received an overwhelming response from all our existing shareholders to the rights issue. Additionally, with formalities relating to the allotment of equity shares to the Russian federation also getting completed, it truly represents a major milestone.’ The monies raised by the stake sale are expected to be used towards continuing to develop SSTL’s network, with a significant portion likely to be used to enhance its mobile broadband offering.