Friday, April 30, 2010

SSTL valuations - analyst view

With spectrum in 3G getting valued at around 10000 cr (or even more) , the
value of spectrum itself in hands of SSTL would be closer to Rs 10000 cr
or about 40 per share. One can safely add another 2500 cr or 10 Rs per share for
the current operations. The fair value of the shares can thus be
construed to be minimum of at least 50 Rs. We believe that once 3G and
BWA spectrum auction is completed, and the pricing of additional spectrum for 2G
is finalized, the stock may get revalued in the market.

These are observation of an independent market analyst and AMSOST may not necessarily endorse such views. However in light of the 3G auction figures, AMSOST's plea in court for buyback at Rs 50 is certainly a fair plea justified by market analysis and the option for promoters to buy equity at Rs 10 is thus a clear robbery of the minority shareholders' value.

Thursday, April 29, 2010

MTS recognized among the World’s 100 Most Powerful Brands

MTS recognized among the World’s 100 Most Powerful Brands
TT Correspondent | New Delhi | 29 Apr 2010

The BRANDZ Top 100 rankings published by the Financial Times and market research firm, Millward Brown recognized MTS as one of the 100 Most Powerful Brands with a value of $9.7 billion.



MTS was ranked 72nd on the list.



The significant growth in brand value over the year is primarily due to the company’s continued execution on its corporate strategy, strong growth and its leadership positions in the Russian & CIS markets and Indian sub continent, said the company.



Speaking on the announcement, Mr.Vsevolod Rozanov, CEO, Sistema Shyam Teleservices Ltd, said, “We are delighted to be among the top 100 brands in the world and are confident that the ranking will boost our presence in Indian market.” He further added, “Our recognition among the league top 100 brands will further strengthen our association with our customers.”



"Since the launch of the new MTS brand in 2006, we have focused on developing it to become the strongest brand in our markets to reflect our position as the leading telecommunications group in Russia, Eastern Europe and Central Asia,” commented Mikhail Gerchuk, Vice President and Chief Commercial Officer of MTS.

Russia's upper house approves budget for buy into Indian SSTL !

[April 28, 2010]

Russia's upper house approves budget for buy into Indian SSTL
(M&A Navigator Via Acquire Media NewsEdge) The upper house of the Russian parliament today greenlighted a bill to allocate up to USD676m (EUR514m) of the 2010 budget for the acquisition of a 20% interest in Indian mobile operator Sistema Shyam TeleServices (SSTL), part of Russian conglomerate AFK Sistema (MCX:AFKC).

The bill is now awaiting the clearance of the president.

The deal was scheduled to close in 2009 and funds for the acquisition were earmarked in the 2009 budget. However, the delay forced the government to vote again and transfer the sum to the 2010 budget.

SSTL's shareholders gave the go-ahead to the issue of new shares to the Russian government in December last year. Following the transaction, the stake of Sistema in its Indian arm will fall to 54.22% from the current 74%.

Country: India; Sector: Telecommunications Target: Sistema Shyam TeleServices (SSTL) Buyer: Russia's government Vendor: AFK Sistema OAO Deal size in USD: 676m Type: Stakebuilding Status: Agreed Comment: Upper house okays budget for stake acquisition ((Comments on this story may be sent to tww.feedback@m2.com)) (c) 2010 M2 COMMUNICATIONS

Monday, April 12, 2010

NO IPO IN CURRENT FISCAL SAYS SSTL !!!!

Russia may buy 20% stake in SSTL after investing $800 mn
Press Trust of India / Chandigarh April 12, 2010, 19:51 IST

Telecom company Sistema Shyam TeleServices (SSTL), which is a joint venture between Russian conglomerate Sistema and Shyam Group, today said the Russian government may acquire 20 per cent stake in the company after infusing $800 million in it to help it expand across India.
"The Russian Federation will be investing about $800 million to fund our expansion programme in the country. Following this, the Russian government may have 20 per cent or little over 20 per cent stake in our venture," company's Deputy Chief Executive Officer T Narasimhan told reporters here today.

Stating that this was for the first time the Russian government was investing in such a venture, he said talks between Russia and Sistema were going on to work out the ratio of exact stake of the former in SSTL.

He further said the Foreign Investment Promotion Board (FIPB) had already given its approval to this proposal. "We are just awaiting the clearance from Russian government... and the whole process (capital infusion) will take another 3-4 months to complete all the formalities," he said.

After the investment of the Russian government in the telecom venture, the stake of Sistema in SSTL will come down to about 54 per cent, said Narasimhan.

At present, Sistema holds 73.71 per cent equity stake in SSTL, while Shyam Group has 23.79 per cent and the remaining 2.5 per cent is publicly held.

SSTL has projected to infuse a sum of $1 billion in the next one year to roll out its CDMA services in the balance 11 circles.

SSTL, which is eyeing break even point by year 2013, has ruled out the possibility of an initial public offer in the current fiscal. "The launch of the IPO is being talked about for quite some time but the market has to be conducive. I do not think we will come out with IPO in this fiscal," he said.

"Moreover, the position of availability of funds for expansion is very comfortable with the company," he added.

SSTL, which has invested $1.5 billion already to roll out CDMA services, is aiming to have a subscriber base of 15 million post expansion. "After rolling out services in the remaining circles, we wish to have 15 million subscribers within 12-15 months," he said.

SSTL currently has a subscriber base of 4 million with presence in 11 circles, including Rajasthan, Bihar, Jharkhand, Kolkata, West Bengal and Mumbai.

The company today also announced the launch of CDMA services under MTS brand in Haryana by offering half a paisa per second tariff. The company is also offering a million free minutes on its Mcard 498 plan. It is offering 24 hours free download with a speed of 3.1 Mbps as part of the inaugural offer

Disclaimer

A BLOG FOR ALL THE SHAREHOLDERS OF SSTL (FORMERLY SHYAMTELELINK LTD) TO COME TOGETHER AND DISCUSS ISSUES OF COMMON INTEREST. YOU CAN REACH US AT AMSOST@GMAIL.COM