Reliance Communications to apply for MTS merger with 2 high courts

NEW DELHI: Anil Ambani-led Reliance Communications Thursday said that it, along with Sistema Shyam Teleservices (SSTL), will shortly apply to the High Courts of Bombay and Rajasthan to clear their merger.

RCom said its plan to merge SSTL with itself has received clearances from Bombay Stock Exchange ( BSE) and National Stock Exchange of India.

A scheme of arrangement is a court-approved agreement between a company and its shareholders or creditors.

Shares of RCom were down 0.32% in Thursday’s mid-day trade.

RCom is taking over Russian conglomerate Sistema’s Indian mobile telephony venture that operates under the MTS brand.

RCom had said Sistema Shyam Teleservices Ltd (SSTL) will hold a 10% equity stake in RCom as a result of the deal. In addition, RCom will assume the liability to pay the government installments for SSTL’s spectrum, amounting to Rs 392 crore per annum for the next 10 years