Batelco pulls out of India after racking up losses and uncertainty over 2G licence

Batelco Group today announced its agreement for the sale of its shareholding in STel Private Limited (STel), a mobile operator in India. The Bahrain telco stated 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.

Batelco Group CEO, Mohamed bin Isa Al Khalifa, stated that “BMIC Limited, a 100% Batelco owned subsidiary company, entered into an agreement, in the fourth quarter of 2011 to sell its 42.7 per cent equity in STel for BD 65.8 million (US$174.5 million) to its Indian partner, Sky City Foundation Limited.”

The agreed time frame for completion of the sale is the end of October 2012.

As stated in previous 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 June 30, 2011, which BMIC’s investment in STel was presented as an asset held-for-sale.

BMIC acquired 42.7 per cent equity in STel via two transactions in May and June 2009 for a total of US$174.5 million.

“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,” concluded Al Khalifa.