RCOM, Sistema Shyam announces merger deal
RCOM will acquire approx. 9 million customers and approx. Rs. 1,500 crore of annual revenues by virtue of the transaction.
In addition, RCOM will acquire SSTL’s most valuable and superior 800 / 850 MHz band spectrum, ideally suited for 4G LTE services, to complement its own unique nationwide footprint of minimum 5 MHz contiguous 800 / 850 MHz spectrum aggregating 148.75 MHz.
"This will extend the validity of RCOM’s spectrum in 800 / 850 MHz band in 8 important circles by a period of 12 years from 2021 till 2033 (Delhi, Gujarat, Tamil Nadu, Karnataka, Kerala, Kolkata, UP (West) and West Bengal)," read an officials statement issued by RCOM.
Gurdeep Singh, President & Chief Executive Officer, Consumer Business, Reliance Communications, said, “We are delighted to welcome Sistema Shyam TeleServices Ltd. as a valued shareholder and partner in Reliance Communications Ltd."
Mikhail Shamolin, President and CEO of Sistema, said, “The merger of SSTL and RCOM's telecom businesses is a milestone event. Despite the numerous challenges the sector faced in recent years, the combination of two leading data service providers is a clear sign of progress for the Indian telecom industry. We are confident that SSTL’s entry into the equity capital of RCOM as a strategic investor will strengthen the competitive position of the combined company and provide subscribers with superior experience by fast- tracking the growth of LTE technology in India."
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