‘Sistema to take $1 bn writedown on India’

Russian firm Sistema will take the writedown due to the suspension of its Indian licences.

Written by Agencies | Moscow | Published:April 20, 2012 12:32 pm

Russian services conglomerate Sistema will take a writedown of nearly $1 billion related to the suspension of its Indian licences,unnamed sources close to Sistema said on Friday.

The writedown is a non-cash item that will be recognised in Sistema’s fourth-quarter results,eroding earnings,one of the sources said. Sistema declined to comment.

Around half of the writedown is related to a licence revaluation and the rest to goodwill,the Vedomosti newspaper quoted a source as saying.

India’s Supreme Court in February ordered the cancellation of 122 telecoms licences held by eight operators,including Sistema and Norway’s Telenor,over alleged irregularities in the way they were awarded in 2008.

Telenor said last month it would seek compensation from India,while Sistema asked India to settle the dispute within six months while saying it reserved the right to approach an international tribunal.

Sistema Shyam (SSTL) is the India venture whose president and chief executive officer (CEO) is Vsevolod Rozanov.

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