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