Reliance Communications (RCOM) and Sistema Shyam TeleServices Limited (SSTL) are reportedly set to finalise the merger agreement by the end of next month.

The due diligence process has been completed and the board of the two companies are likely to meet soon for the finalisation of the merger. Earlier in June 2015, the two companies had announced that they entered into talks for a possible merger through a stock-swap deal.

As per the proposed merger agreement, SSTL's parent company Sistema will hold a stake of 8-10 per cent in the merged entity while the remaining stake will be held by RCOM. Further, most of the chief executives in SSTL will get transferred to the merged entity. The merger will extend the validity of RCOM's licence in several circles from 2021 to 2033.