3rd Feb 2012 12:45
SISTEMA AD HOC NOTICE ON THE INDIAN SUPREME COURT DECISION
Moscow, Russia - February 3, 2012 - Sistema JSFC (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, today announces that the Supreme Court of India issued a judgment on February 2, 2012 revoking 122 telecom licenses of 11 telecom operators, including 21 of the 22 licenses held by Sistema Shyam TeleServices Ltd (SSTL), a subsidiary of Sistema that provides cellular services in India under MTS brand. The order was issued on the grounds that these licenses were not granted in accordance with required procedures by the Department of Telecommunications. The court has further directed the Telecom Regulatory Authority of India (TRAI), India's top telecom regulatory body, to make fresh recommendations on the granting of 2G licenses and the re-allocation of spectrum via auction within four months by the Department of Telecommunications (DOT).
Sistema, by way of its investments in SSTL, has fully demonstrated its commitment to its Indian operations and is very disappointed by the Supreme Court's decision. In essence, Sistema and SSTL are being penalised for acting in good faith and in reliance on the appropriateness of the procedures established by India's telecommunications authorities. Sistema therefore looks forward to a clear, transparent, and equitable policy decision on these matters by the Indian government.
To safeguard its interests, Sistema and SSTL will contest this order by pursuing all available legal remedies. In the meantime, Indian operations will remain business as usual for SSTL, a national telecom operator serving more than 15 million customers, employing over 3500 employees, and with investments of over US$ 2 billion.
About Sistema Shyam TeleServices Ltd.
Sistema Shyam TeleServices Ltd. (SSTL) is a venture, involving equity participation by Sistema (LSE: SSA) of Russia, the Russian Federation and the Shyam Group of India. Sistema is the majority shareholder in the company which operates its telecom services under the MTS brand. MTS is well recognized in India and worldwide for its commitment to high quality and innovative telecom solutions. MTS has recently been ranked by Millward Brown as 80th most valuable brand in the world. In a short span of time, MTS in India has secured over 15 million wireless subscribers and under the MBlaze brand provides mobile broadband services to more than 1,200,000 customers in over 200 cities across the country.
***
For further information, please visit www.sistema.com or contact:
| Investor Relations | Public Relations | |||
| Evgeniy Chuikov | Vsevolod Sementsov | |||
| Tel.: +7 (495) 692 1100 | Tel: +7 (495) 730 1705 | |||
Sistema is the largest diversified public financial corporation in Russia and the CIS, which invests in and is a major shareholder of companies serving over 100 million customers in the sectors of telecommunications, high technology, oil and energy, radars and aerospace, banking, retail, mass-media, tourism and healthcare services. Founded in 1993, the company reported revenues of US$ 9.0 billion for the third quarter of 2011, and total assets of US$ 42.7 billion as at September 30, 2011. Sistema's global depository receipts are listed under the symbol "SSA" on the London Stock Exchange. Sistema's ordinary shares are listed under the symbol "AFKS" on the MICEX-RTS Stock Exchange, and under the symbol "SIST" on the Moscow Stock Exchange (MSE). Sistema was ranked number 342 in the 2010 edition of the Fortune Global 500 list. Website: www.sistema.com
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Sistema. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might" the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industries, as well as many other risks specifically related to Sistema and its operations.
This document does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares or other securities of JSFC Sistema and/or any of its subsidiaries and affiliated companies, nor shall any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto, nor does it constitute a recommendation regarding the shares or securities of JSFC Sistema and/or any of its subsidiaries and affiliated companies.
Copyright Business Wire 2012
Related Shares:
SSA.L