Debt-ridden telecom firm Reliance Communications (RCom) has allotted over 27.65 crore shares equivalent to 10 percent equity capital of the company to Sistema Shyam Teleservices (SSTL) which merged with the company early this month. The value of shares allocated to Russian conglomerate Sistema owned SSTL is estimated to be around Rs 415 crore.
The completion of SSTL business merger provided a breather to RCom which will shut down its loss-making wireless telephony business by December 30 and concentrate only on 4G internet services.
As part of the deal, RCom has acquired the entire telecom business of SSTL including its licences which bring along 30 MHz of spectrum in 800 MHz and 850 MHz band, considered premium frequencies for providing 4G services.
