The Supreme Court of India early this month cancelled all 122 licences and ordered to re-auction the same citing a loss of $40 billion to the national exchequer through the bidding of licenses in 2008 by the telecom authorities in India.
Batelco announced its agreement for the sale of its shareholding in STel Private Limited (STel), a mobile operator in India. This is a part of an earlier understanding with its Indian Partner to exit, given the circumstances surrounding the 2G probe in India over the past twelve months.
“BMIC Limited, a 100% Batelco owned subsidiary company, entered into an agreement, in the fourth quarter of 2011 to sell its 42.7% equity in STel for BD 65.8million ($174.5million) to its Indian partner, Sky City Foundation Limited,” Batelco’s Group Chief Executive, Shaikh Mohamed bin Isa Al Khalifa, said.
The agreed time frame for completion of the sale is the end of October 2012.
As stated in previous press statements, BMIC Limited (BMIC) had decided, as early as April 2011 to actively pursue the sale of this investment. Batelco Group had disclosed in its Financial Accounts for the period ending 30 June 2011, that BMIC’s investment in STel was presented as an asset held-for-sale.
BMIC acquired 42.7% equity in STel via two transactions in May and June 2009 for a total of $174.5illion.
“As Batelco continues to grow and diversify its operations, we remain interested in other investment opportunities for the Batelco Group that will enable us to participate in the Indian telecom market. We are actively exploring all options in this respect over the coming months,” Shaikh Mohamed, said.