RCOM has completed the Sistema Shyam TeleServices (SSTL) merger transaction, upon attaining approvals from all relevant regulators and courts. RCOM’s board of directors took on record the demerger of SSTL’s telecom business in India, run under the brand name MTS. Further, SSTL’s shareholders will have the right to convert SSTL shares into RCOM shares in proportion to their equity stakes in SSTL as a part of a tender offer to be announced by end-January 2018. As a result of the demerger, SSTL will receive a 10 per cent equity stake in RCOM’s fully diluted equity share capital. The issuance of such shares has been approved by RCOM’s board. In addition, RCOM will be liable to pay the Department of Telecommunications instalments for SSTL’s spectrum, amounting to Rs 3.9 billion per annum for the next eight years. As per the agreement, RCOM has now acquired the telecommunications business of SSTL including its licences.