New Delhi, Jan 14 (IANS) Reliance Communications (RCOM) and Sistema Shyam Teleservices on Thursday said they will apply to the Bombay High Court and the Rajasthan High Court for approving a merger.
The statement came in the form of a filing with stock exchanges following a query on the subject.
The Anil Ambani-led Reliance Communications in November last year announced a major accord to acquire the Indian business of Russia’s Sistema — which is operating under the ‘MTS’ brand — in a unique stock-cum-spectrum-fee payment deal.
The deal first calls for the de-merger of the telecom business of the Russian group’s Indian entity and then the acquisition of that by the Reliance Group firm.
Prior to that, the targeted company is to pay its existing debt. Post merger, the shareholders will be entitled to a 10-percent stake in Reliance Communications.