Russian conglomerate Sistema JSFC has signed an agreement with the Russian Federation for State Property Management to buy back 17.14% stake owned by the federation in Sistema Shyam TeleServices (SSTL), an Indian subsidiary of Sistema JSFC. Under the agreement, payment for the shares will be made to the Russian federal budget in installments over a period of 5 years: 30% in 2016, 25% in 2017, and 15% in each of 2018, 2019 and 2020. Russia’s Federal agency for State Property Management acquired 17.14% stake in Sistema JSFC’s Indian subsidiary SSTL in March 2011 for Rs 2698.8 crore (~$600 million at that time). At that time, both parties simultaneously signed an optional agreement to sell the shares back to Sistema JSFC after a period of five years for the higher of US$ 777 million or the market value determined by an independent evaluator. After the Russian Federation acquired 17.14% stake in SSTL in 2011, Sistema JSFC remained as a major investor owning 56.68% of its India unit Sistema Shyam, while Indian investors owned 26.05% stake. By 2014, Sistema JSFC sought for an approval from the Foreign Investment Promotion Board (FIPB) to increase its stake to 73.71% in Sistema Shyam Teleservices, but was turned down by the FIPB in September 2014. At that time, Sistem said it eventually plans to acquire 100% in it Indian subsidiary ( SSTL), however it suggested that this stake increase will happen across multiple tranches than through a single transaction. SSTL merger with RCOM: In March, Shareholders of Sistema Shyam Teleservices, which…
