8th Sep 2010 14:15
THE RUSSIAN GOVERNMENT APPROVES EQUITY INVESTMENT IN SISTEMA SHYAM TELESERVICES Ltd.
Moscow, Russia - September 8, 2010 - Sistema (LSE: SSA), the largest diversified public financial corporation in Russia and the CIS, which invests in and is a major shareholder of companies operating in different industries, today announced that the Government of the Russian Federation has approved an equity investment in Sistema Shyam TeleServices Ltd. (SSTL), Sistema's subsidiary in India, which provides telecommunications services under the MTS brand.
It is expected that the Russian Government, represented by the Federal Agency for State Property Management (Rosimushchestvo), will participate in an issuance of additional shares of SSTL, paying an equivalent of US$ 600 million in the form of Indian rupees held in accounts representing Indian governmental debt to the Russian Federation.
The issuance of shares to the Russian Government is subject to the receipt of necessary regulatory and corporate approvals, including the approval by the General Meeting of shareholders of SSTL, and the signing of binding agreements.
SSTL plans to use the funds to be received from the share issuance to finance continued development of the company's activities, in particular: the reinforcement of its leading position in the area of wireless broadband internet coverage (under the EV-DO Rev. A standard), the expansion of its branded retail network in its current telecommunication circles, and the accelerated launch of operations in a number of new circles.
Sistema Shyam TeleServices Ltd. (previously Shyam Telelink Ltd.), established in 1998, launched its full operations in the State of Rajasthan in 2000. The company received the pan-Indian licence for mobile network operations in March 2008, and presently owns right to use frequencies for provision of mobile telephony services in 22 circles across the country. The company provides telecommunication services to more than 6 million subscribers in 12 circles: Rajasthan, Tamil Nadu (and Chennai), Kerala, Kolkata, West Bengal and Sikkim, Bihar (and Jharkhand), Delhi, Karnataka, Mumbai, Haryana, Maharashtra and Andhra Pradesh. SSTL is a joint venture between Sistema and Shyam Group of India with a 73.71% stake owned by Sistema.
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For further information, please visit www.sistema.com or contact:
| Investor Relations | Public Relations | |||||||||
| Ekaterina Tsukanova | Vsevolod Sementsov | |||||||||
| Tel: +7 (495) 228 1536 | 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$ 6.2 billion for the first quarter of 2010, and total assets of US$ 42.6 billion as at March 31, 2010. 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 RTS Stock Exchange, under the symbol "AFKC" on the MICEX Stock Exchange, and under the symbol "SIST" on the Moscow Stock Exchange (MSE).
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. In addition, there is no assurance that the new contracts entered into by our subsidiaries referenced above will be completed on the terms contained therein or at all. 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 2010
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