Russian press --
VedomostiSistema sees SSTL's minority shareholders ask Indian authorities not to allow group to increase stake until court's decision in their suit (translated)
The minority shareholders of AFK Sistema’s subsidiary Sistema Shyam Teleservices (SSTL) have asked India’s authorities not to allow the Russian group to increase its stake in SSTL, until the court issues a decision in their lawsuit against SSTL, reported Vedomosti.
The Russian daily cited a statement by the Association of Minority Shareholders for this information. It said that the minority shareholders of the Indian telco SSTL had asked India's Foreign Investment Promotion Board (FIPB) to delay a decision on the increase of Sistema’s stake in SSTL, until the court issues a decision in their lawsuit against SSTL.
SSTL's minority shareholders went to court in 2012, seeking that SSTL enable them to exit the company, Vedomosti reported.
The minority shareholders approached FIPB as the board is now considering Sistema’s application to convert its preferred stock in SSTL into ordinary shares, the paper reported. Between April 2012 and March 2013, Sistema purchased 100% of SSTL’s preferred shares from the company, for USD 1.05bn.
SSTL’s minority shareholders have asked FIPB to stay its decision as on 9 May, SSTL provided assurance to the court that before the next hearing, scheduled on 11 July 2014, it would not change the structure of its share capital.
Vedomosti also quoted Sistema‘s representative Ekaterina Tsukanova, noting that the hearing in the Jaipur Court is regarding SSTL’s minority shareholders concern that they are unable to sell their stakes. The actions of Sistema to convert the already financed preferred shares into ordinary shares have no impact on the matter.
According to Tsukanova, the general shareholder meeting of SSTL is planned for 27 June 2014, at which the conversion of shares will be discussed. The minority shareholders will be offered the possibility to participate in the additional share issue, she confirmed.
Sistema owns a 56.58% stake in SSTL and Russia’s state property agency Rosimushchestvo a 17.14% stake, while Shyam Group owns a 23.98% stake, according to Vedomosti. In 2013, SSTL posted revenues of USD 209m under US GAAP.
It was previously reported that Sistema seeks the approval of the Government of India for raising its ownership in SSTL to 100%.
VedomostiSistema sees SSTL's minority shareholders ask Indian authorities not to allow group to increase stake until court's decision in their suit (translated)
The minority shareholders of AFK Sistema’s subsidiary Sistema Shyam Teleservices (SSTL) have asked India’s authorities not to allow the Russian group to increase its stake in SSTL, until the court issues a decision in their lawsuit against SSTL, reported Vedomosti.
The Russian daily cited a statement by the Association of Minority Shareholders for this information. It said that the minority shareholders of the Indian telco SSTL had asked India's Foreign Investment Promotion Board (FIPB) to delay a decision on the increase of Sistema’s stake in SSTL, until the court issues a decision in their lawsuit against SSTL.
SSTL's minority shareholders went to court in 2012, seeking that SSTL enable them to exit the company, Vedomosti reported.
The minority shareholders approached FIPB as the board is now considering Sistema’s application to convert its preferred stock in SSTL into ordinary shares, the paper reported. Between April 2012 and March 2013, Sistema purchased 100% of SSTL’s preferred shares from the company, for USD 1.05bn.
SSTL’s minority shareholders have asked FIPB to stay its decision as on 9 May, SSTL provided assurance to the court that before the next hearing, scheduled on 11 July 2014, it would not change the structure of its share capital.
Vedomosti also quoted Sistema‘s representative Ekaterina Tsukanova, noting that the hearing in the Jaipur Court is regarding SSTL’s minority shareholders concern that they are unable to sell their stakes. The actions of Sistema to convert the already financed preferred shares into ordinary shares have no impact on the matter.
According to Tsukanova, the general shareholder meeting of SSTL is planned for 27 June 2014, at which the conversion of shares will be discussed. The minority shareholders will be offered the possibility to participate in the additional share issue, she confirmed.
Sistema owns a 56.58% stake in SSTL and Russia’s state property agency Rosimushchestvo a 17.14% stake, while Shyam Group owns a 23.98% stake, according to Vedomosti. In 2013, SSTL posted revenues of USD 209m under US GAAP.
It was previously reported that Sistema seeks the approval of the Government of India for raising its ownership in SSTL to 100%.
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