Reliance Communications plea to buy Sistema admitted

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Mumbai, Feb 8 (IANS) The Bombay High Court has directed Reliance Communications to convene a shareholders’ meeting on March 8 to take up the issue of merging Sistema Shyam Teleservices into its fold, while admitting an application in this regard.

“Reliance Communications is, therefore, finalising a notice of the above meeting to be sent to its shareholders and taking necessary action in the matter,” the company said in a statement, adding director R.N. Bhardwaj has been named chair of the court-convened meeting.

The Anil Ambani-led Reliance Communications announced in November last year that it intended to acquire the Indian business of Russia’s Sistema — which is operating under the ‘MTS’ brand — in a unique stock-cum-spectrum-fee payment deal.

The deal first calls for the de-merger of the telecom business of the Russian group’s Indian entity and then the acquisition of that by the Reliance Group firm.

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Prior to that, the targeted company is to pay its existing debt, while the shareholders will be entitled to a 10-percent stake thereafter in Reliance Communications.

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