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Reliance Communications is in discussions with Sistema Shyam TeleServices Ltd (SSTL), which provides telecom services under ‘MTS’ brand, to merge the latter’s Indian operations with itself.
The discussions are at an “advanced stage”, Reliance Group Chairman Anil D Ambani told shareholders at its 11th annual general meeting on Wednesday.
At 2.22 pm, shares in RCom rose 5.63 per cent to Rs 67.50 on the BSE, which was up 1.09 per cent.
The companies expect to sign and announce the transaction within the next month or two, he said.
The companies are in discussions for a merger through swapping of stocks.
“The proposed merger is highly value accretive for RCom, as it will, in eight important circles, extend the validity of the 850 spectrum by a significantly long period of 12 years, all the way up to the year 2033,” he added.
On the company’s plans to create an independent tower company through stake sale in its tower business, Ambani said the company expects to sign and announce the transaction within the next month or two.
“This transaction will result in a substantial reduction of RCom’s overall debt,” he said, without divulging further details.
RCom is also in looking to extend its strategic partnerships with industrialist Mukesh Ambani-controlled Reliance Jio Infocomm, which is gearing up to launch 4G services by December this year.
RCom, which holds spectrum in the 800–850 MHz band, is in advanced stages of discussions for nationwide trading and sharing arrangements with Reliance Jio Infocomm.
“These arrangements will facilitate RCom customers’ access to Reliance Jio’s world class 4G/LTE networks on an asset-light and minimal capex model,” he added.
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