<p>"As a part of previously announced transaction the Russian government completed the payment for shares of SSTL," the CDMA services provider said in a statement.<br /><br />Sistema, leading public diversified corporation in Russia and the CIS region, has a 74 per cent stake in the joint venture with the Shyam Group. Shyam Group holds 23.5 per cent stake and the rest 2.5 per cent being public partake.<br /><br />The Russian government will acquire the stake from Sistema, which will issue fresh shares.<br />SSTL is among a number of companies who have received government notice for failing to meet network roll-out obligations.<br /><br />SSTL plans to use the funds to finance expansion and to strengthen its leading position in wireless broadband.<br /><br />It will also use the funds to expand the branded retail network and to accelerate the launch of operations in a number of new circles.<br /><br />Following the additional share issue, the total stake in the share capital of SSTL owned by Russian parties (Sistema and Rosimushchestvo) will not exceed 74 per cent.<br /><br />SSTL is expected to issue shares to the Russian government during the first quarter of 2011, subject to the successful completion of a rights issue to SSTL’s Indian shareholders and compliance with all applicable Indian regulatory requirements.<br /><br />SSTL has over 8 million subscribers. It operates in 13 telecom circles of Kolkata, West Bengal & Sikkim, Rajasthan, Chennai and Tamil Nadu, Kerala, Bihar and Jharkhand, Mumbai, Maharashtra and Goa, Delhi and NCR, Haryana, Karnataka, Andhra Pradesh and Gujarat.<br /><br />The company provides mobile broadband services under the MBlaze brand to more than 400,000 customers in 96 cities in India.</p>
<p>"As a part of previously announced transaction the Russian government completed the payment for shares of SSTL," the CDMA services provider said in a statement.<br /><br />Sistema, leading public diversified corporation in Russia and the CIS region, has a 74 per cent stake in the joint venture with the Shyam Group. Shyam Group holds 23.5 per cent stake and the rest 2.5 per cent being public partake.<br /><br />The Russian government will acquire the stake from Sistema, which will issue fresh shares.<br />SSTL is among a number of companies who have received government notice for failing to meet network roll-out obligations.<br /><br />SSTL plans to use the funds to finance expansion and to strengthen its leading position in wireless broadband.<br /><br />It will also use the funds to expand the branded retail network and to accelerate the launch of operations in a number of new circles.<br /><br />Following the additional share issue, the total stake in the share capital of SSTL owned by Russian parties (Sistema and Rosimushchestvo) will not exceed 74 per cent.<br /><br />SSTL is expected to issue shares to the Russian government during the first quarter of 2011, subject to the successful completion of a rights issue to SSTL’s Indian shareholders and compliance with all applicable Indian regulatory requirements.<br /><br />SSTL has over 8 million subscribers. It operates in 13 telecom circles of Kolkata, West Bengal & Sikkim, Rajasthan, Chennai and Tamil Nadu, Kerala, Bihar and Jharkhand, Mumbai, Maharashtra and Goa, Delhi and NCR, Haryana, Karnataka, Andhra Pradesh and Gujarat.<br /><br />The company provides mobile broadband services under the MBlaze brand to more than 400,000 customers in 96 cities in India.</p>