Bahrain Telecommunications Co (Batelco) on 8 February 2012 announced to sell its 43 percent stake in Indian joint venture S Tel for $175 million, in the first foreign exit since the Supreme Court of India nullified 122 telecoms licences on 2 February 2012 as part of a 2G scam probe.
Batelco will sell the stake to India partner Sky City Foundation Ltd and will receive the same price it paid to acquire its holding in S Tel in 2009.The deal would be materialized by the fourth quarter of the fiscal year 2011-12.
The now voided licences were awarded by the then Union Telecom Minister A Raja in January 2008 on the basis of first come first serve policy, prior to the Batelco’s deal with its Indian affiliate S Tel. Indian S Tel had 3.6 million customers as of December and ranks 12th out of 15 players by subscriber base. It has licences for six of India's 22 zones.
S Tel is a telecom company owned by Sivasankaran group. The Sivasankaran group holds 51% stake in S Tel. It has its operation in Orissa, Bihar, Himachal Pradesh, North East, Assam and Jammu & Kashmir.
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