Sistema set to buy Aircel for $3 bn

amar

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Sistema set to buy Aircel for $3 bn in largest telecom deal since Vodafone-Hutch buyout



Russia's SistemaJSFC is close to acquiring a controlling stake in Aircel Communications for around $3 billion (Rs 16,000-17,000 crore), making this one of the largest transactions in the telecom sector since Vodafone bought Hutchison Essar for $11.7 billion in 2007.

Two persons familiar with the development said Sistema would buy into Aircel's parent company based overseas with rights to have the Indian arm transferred to it after an ongoing restructuring process is completed. Malaysia's Maxis Communications owns 74% stake in Aircel through multiple entities, which are being consolidated into a single company.

Aircel's spokesman said the company was not aware of such a development. The Russian company's Indian arm, Sistema Shyam TeleServices, said it believed the talk of engaging with other telecom service providers for a possible deal was motivated. "The immediate priority is to seek clarity on spectrum-related regulations from the government and also look at the outcome of the curative petition filed in the Supreme Court," said a company spokesman.
 

anubhav11

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they might become 3rd dual technology operator in india after reliance and tata( if they bid for lost cdma spectrum)......
 

pratikr

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they might become 3rd dual technology operator in india after reliance and tata( if they bid for lost cdma spectrum)......


Not third it's Forth. You forget BSNL/MTNL
 

moindear

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Thats a big aquisition, but can they allow a russian company to control a telecom company in India? No security implications?
 


Toocool

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who will pay tax on it is the question?:biggrin: MTS ofcourse if the law has been changed, which is the case i think
 

mhsabir

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Thats a big aquisition, but can they allow a russian company to control a telecom company in India? No security implications?

We already have Vodafone from UK, Maxis of Malaysia & others as well. So, whats the issue with that. I dont see us in a cold war situation against Russia - or am I missing something?
 

sachins

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It's possible.

The people behind aircel are the most aggressive players in the indian market. Aircel gives the cheapest 2G and 3G services compared to any other company in india. Another venture taken by this group is broadband internet(spectranet) and if you look at the rates, they're offering it cheaper than BSNL/MTNL. And even if aircel doesn't have 3g/4g licences in many states, they already have a broadband infrastructure in many states through spectranet.

It all sounds like a big plan.

Exactly, why would allowing a Russia based company to buy aircel, have security implications ?
There are no security implications. Russia is india's ONLY strategic ally.
 

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