The Hindu Business Line : Russia plans to infuse up to $670 m in SSTL

KOLKATA: The Russian government may infuse up to $670 million in Sistema Shyam Teleservices Limited (SSTL), a joint venture between Russia-based Sistema and the Shyam Group of India, for around 20 per cent stake in the firm.

“We are working on valuations and sorting some technical issues. There is possibility to offer around 20 per cent of equity to the Russian government in the JV. The quantum of investment is not finalised, but the government has allocated $670 million in its budget,” Mr Sergey Cheremin, Senior VP, Sistema said here on Thursday.

“Once, we sign the agreement with the Russian government which we hope will be in the next three months, we will file for Indian regulatory approvals,” he said.

The infusion would be in fresh equity to help the JV to raise capital of over $5 billion proposed to be invested over the next four to five years.

So far, there has been no change in plans despite the global recession. Mr Cheremin could not give the exact paid up equity capital of SSTL, but said it was in the region of $600 million out of total $1.2 billion investment infused in the company so far. - PTI

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