RCom completes due diligence for merger with MTS: Sources

Anil Ambani's Reliance Communications (RCom) has completed the due diligence for its merger with Russia's Sistema Shyam Teleservices today.The two companies are going to meet early next month to finalise the merger and the swap ratio. RCom’s board, and the MTS management will be overhauled post their merger.According to the deal, MTS and the Russian government will hold two board seats in the combined entity, wherein MTS, Sistema and the Russian government will hold a maximum of 10 percent in the merged entity,Post the closure, Anil Ambani group will hold controlling stake and most of the chief executives from the Russian company will be absorbed completely.Though MTS is a loss-making company with a debt of about Rs 700-800 crore, RCom will be able to expand its presence in the smaller circles, which it did not have earlier.