Reliance Communications plea to buy Sistema admitted

The Bombay High Court has directed Reliance Communications to convene a shareholders' meeting on March 8 to take up the issue of merging Sistema Shyam Teleservices into its fold, while admitting an application in this regard.

"Reliance Communications is, therefore, finalising a notice of the above meeting to be sent to its shareholders and taking necessary action in the matter," the company said in a statement, adding director R.N. Bhardwaj has been named chair of the court-convened meeting.

The Anil Ambani-led Reliance Communications announced in November last year that it intended 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, while the shareholders will be entitled to a 10-percent stake thereafter in Reliance Communications.