Shyam Telelink has sold 10 per cent stake to Russian telecom giant Sistema for US $ 11.4 million. Sistema was trying since a very long time to make a presence in Indian telecom market. The company has informed that it is interested in buying more stake in Shyam Telelink and is looking for in place in management of the company.

Sistema has to get approval from Foreign Investment Promotion Board of India before buying more stake in Indian company. The Russian telecom major is eyeing 51% stake in Shyam Telelink. Sistema was trying to buy some stake in Aicel Cellular and Hutch-Essar as well, but the deals were stuck in between. Sistema is the largest private sector consumer services company in Russia with more than 8 crore consumers in Russia and many parts of Europe. The company stared operations in 1993.

Shyam Telelink has 4,000 km of fibre-optic lines and provides internet services under name of Shyam Internet. Shyam Telelink holds 100% stake in Shyam Internet.

Shyam Telelink offers CDMA based mobile services in Rajasthan. The company is in an expansion mood and has applied for Universal Access Service License for offering mobile services in other parts of the country. With a stake sale to a strategic partner, the company will be in a better position regarding expansion plans.

CEO Statements

Rajiv Mehrotra, Chairman Shyam group said, “This relationship would not only give Shyam Telelink an edge to compete in the competitive Indian market but would also bring new services and practices to benefit the Indian consumers.”

Sistema CEO  said, “The acquisition of the stake in Shyam Telelink is in line with our strategy to enter rapidly developing markets and further integrate Sistema in the global business community.”

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