Batelco closes deal on Indian acquisition

On May 10, Batelco completed its purchase of Indian GSM start up S Tel for US$225 million, following an agreement signed in January for the Bahrain-based operator to acquire a 49 per cent shareholding.

S Tel is yet to launch operations, but holds licences in six Indian states – Bihar, Orissa, Jammu and Kashmir, Himachal Pradesh, North East and Assam, which together have a combined population of 230 million and mobile penetration of less than 20 per cent.

“Conditions have been satisfied and Batelco has completed the first phase of its investment in S Tel. Batelco now holds a 36.9 per cent share of S Tel and in the coming months the shareholding will increase to 49 per cent,” stated Batelco Group CEO Peter Kaliaropoulos.

Batelco’s immediate responsibility is to assist the Chennai-based licensee in advancing the rollout of its network infrastructure in preparation for a launch in the fourth quarter of this year, with a focus on the north east and north west of the country.

The conclusion of the deal closely follows reports on May 8 that Indian conglomerate Sahara India Pariwar acquired 11.7 per cent of S Tel for an estimated US$55 million. Prior to Sahara’s purchase, it is believed that private equity firms Skycity Foundations and Telecom Investments (Mauritius) held the remaining 51 per cent of S Tel.