Reliance Communication gets Bombay HC approval for Sistema acquisition

NEW DELHI: The Bombay High Court on Friday gave its nod to Reliance Communications’ acquisition of Russian conglomerate Sistema’s Indian unit that offers mobile voice and data services under MTS brand. The Anil Ambani-led telco will now seek a formal approval from the department of telecommunications for its allstock acquisition of Sistema Shyam Teleservices Ltd (SSTL), which is expected to be closed by November, a person familiar with the matter said.

The stock market welcomed the news, helping RCom shares close 2.3% higher at Rs 47.40 on the Bombay Stock Exchange on Friday, outperforming a negative broader market.

RCom and SSTL had last week received an approval from the Rajasthan High Court for the merger scheme as detailed in a petition filed by SSTL.

The Bombay HC order follows a petition filed by RCom seeking a nod for the scheme of arrangement between the company and SSTL and their respective shareholders and creditors.

In November, RCom announced acquisition of Sistema’s Indian unit in an all-stock deal, valued at around Rs 4,500 crore, which will create an operator with 118 million subscribers.