Batelco, which invested $123.3 million and holds 2.7% stake in Indian operations Stel, is working out various modalities with the shareholders, employees and suppliers after Indian Supreme Court cancelled 2G telecom Licences including STel.
“Batelco in conjunction with STel Management, other STel shareholders and legal advisers are carefully studying the detailed judgement handed down by the Supreme Court of India on Friday 3 February 2012, which cancelled all 122 2G licences issued in 2008 and allocated spectrum granted to 8 operators, including STel,” Batelco in a statement said.
“Whilst the immediate focus is on STel’s customers, employees and suppliers, STel shareholders will also review the sustainability of its business operations under the revised conditions imposed by the Indian Supreme Court’s recent judgement impacting the telecoms industry,” it added.
It clarified that Batelco was not involved in the STel licence application process nor had any knowledge of any of the events surrounding the granting of the 2G licences in January 2008.
Batelco holds 42.7% equity in STel since May 2009. As at 31 December 2011, Batelco’s carrying value of its equity in STel is $123.3million.
“Batelco invested in STel following a diligence exercise with the support of financial and commercial advisers. It also received certain representations and warranties from STel’s promoter regarding the validity of the licence,” it said.
“Batelco respects and abides by all legal and regulatory rulings and determinations in every market it operates. Batelco will review, together with other STel shareholders, all legal options following the handing down of the Indian Supreme Court judgement,” it added.
As Batelco continues to grow and diversify its operations, the statement added, it intends to explore all options to remain involved in the Indian telecommunications market.