Russia-based Sistema plans to increase its stake in Sistema Shyam TeleServices Limited (SSTL), to meet a portion of the company’s financing requirements in financial year 2012.
The company may be required to consider an alternate financing roadmap, as its promoters have put their plans to list SSTL on the backburner, owing to adverse market conditions.
Currently, Sistema owns 56.68 per cent of SSTL. The Russian government and the Shyam Group hold 17.14 per cent and 23.98 per cent respectively, while minority shareholders own the remaining 2.2 per cent.
According to Vsevolod Rozanov, president and CEO, SSTL, while there is a possibility of Sistema increasing its stake in SSTL to arrange the next round of funding, the situation could change if the promoters opt for a mix of debt and equity. A final decision will be taken by October after factoring in both the opex and capex requirements.
It is believed that the company may hinge its financing plan on technology; as it is yet to take decide whether it will nationally upgrade its CDMA networks to EVDO-Rev. B.
