If sources are to be believed, Russian government will complete the deal to pick up 20% stake for $600 million in Sistema Shyam telecom joint venture by first quarter of 2011.
The company has also signed a letter of mandatetoday with Russia-based Gazprombank for a loan of $200 million which will be used for launching network.
According to SSTL President and CEO Vsevolod Rozanov, the company will complete all the technicalities related with the $600 million loan from the Russian Government for a 20% stake sale by the first quarter of next year and also for the bank loan.
In September, 2010, the government of the Russian Federation had approved an equity investment of $600 million in SSTL to pick up a 20% stake, which will be in the form of Indian rupees held in accounts representing the Indian government’s debt to the Russian Federation.
On the loan deal, the formal procedure of mandate letter was executed between Gazprombank and SSTL for rising of funds for the amount equivalent to $200 million. The signing of the mandate letter by Gazprombank for raising a loan of $200 million in favor of SSTL is very significant for the company.It further reinforces commitment to launch a world class telecom network in India by harnessing the power of CDMA technology. This is bound to benefit both their customers and also create value for all our shareholders.