Shareholders of telecom operator Sistema Shyam Teleservices (SSTL), which runs the MTS brand, today approved the merger of the company with Reliance CommunicationsBSE 0.48 % in a meeting convened by the Rajasthan High Court. “SSTL shareholders have approved the merger scheme with RCom at the meeting today,” a source privy to the development told PTI. When contacted, an SSTL spokesperson said the meeting in Jaipur was convened by the high court to seek approval of the SSTL shareholders to merge the company with Reliance Communications. “As per initial indications, members of the company have duly approved the merger process through voting by way of poll at the meeting and through e-voting. However, a formal declaration can only be made after all the ballot votes have been counted,” the spokesperson said. Queried further, the spokesman said the result of the meeting will be announced on March 21. Earlier this month, shareholders of RCom too had approved the merger scheme. The RCom-SSTL merger deal has already been cleared by the Competition Commission of India and Sebi. Now, it needs to be cleared by the Rajasthan High Court and the Bombay High Court. Once approval from these courts comes by, RCom will approach the Department of Telecom for final paperwork. The deal between RCom and SSTL is valued at around USD 690 million (Rs 4,500 crore) and is expected to close in the second quarter of 2016.
Source: Economic TimesSistema Shyam shareholders approve merger with Reliance Communications.
Industry: Telecom 2016-03-21
