Batelco exits India, sells STel stake

Batelco has become the first foreign operator to exit India in the wake of the controversial cancellation of mobile licences by a recent court ruling. The company announced an agreement to sell its shareholding in Indian mobile operator STel to its Indian partner. STel is one of several operators in India that had their licences withdrawn by a Supreme Court ruling that found the award process in 2008 flawed. Batelco said that BMIC, its 100 percent subsidiary, entered into an agreement in the fourth quarter of 2011 to sell its 42.7 percent equity in STel for BHD 65.8 million (USD 174.5 million) to its Indian partner Sky City Foundation. The operator noted that it had been considering a sale since April 2011. The divestment is expected to close by October. BMIC acquired 42.7 percent in STel via two transactions in May and June 2009 for a total of USD 174.5 million.