MOSCOW, September 26 (RIA Novosti) - AFK Sistema [RTS: AFKS] has paid $11.4 million for a 10% stake in the Indian cell phone service provider Shyam Telelink, the Russian company said Wednesday.
AFK Sistema, one of Russia's largest diversified corporations, intends to increase its stake to 51%, in a deal that could be worth a total of $58.1 million.
"The acquisition of a stake in Shyam Telelink Ltd. is part of our strategy of entering emerging markets and integrating further into the world business community. We consider India to be one of the most attractive markets, with a high growth potential," the company said.
Shyam Telelink Ltd. is the basic telecom services licensee for the state of Rajasthan with a population of 62 million.
AFK Sistema, which manages businesses in service-based industries, including telecommunications, technology, insurance, banking, real estate, retail and media, reported its 1H07 net profit, calculated to Russian Accounting Standards (RAS), at 43.06 billion rubles (about $1.67 billion), up 3,350%, year-on-year.
The company attributed its profit dynamics to a revaluation of investment in shares quoted on the stock exchange.
AFK Sistema's main shareholder is Vladimir Yevtushenkov (62.1%), who is also its founder and board chairman.
In February 2005, AFK Sistema held an initial public offering (IPO) on the London Stock Exchange to raise $1.56 billion for 19% of its charter capital.
