The Hindu : Front Page : Bahrain-based company acquires stake in S Tel

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Monday, Jan 19, 2009
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Bahrain-based company acquires stake in S Tel

Special Correspondent

Batelco says acquisition will provide significant growth opportunities

Batelco chairman says company bought 49 per cent stake for $225 million
Batelco Millenium India Company Limited has start-up spectrum to operate in six circles

NEW VENTURE: Batelco chairman Shaikh Hamad bin Abdulla Al-Khalifa (sitting second from left), Adel Al Maskati and other Board directors and management staff, at the ceremony where an investment agreement was signed with S Tel directors.

CHENNAI: Bahrain-based integrated telecommunications company Batelco has announced plans to invest in India in the current year by purchasing a 49 per cent stake in S Tel Limited.

Batelco chairman Shaikh Hamad bin Abdulla Al-Khalifa said on Sunday that the company which has operations in six markets in the Middle East, had agreed to buy a stake in S Tel, which recently established Indian mobile operations, for $225 million, as leader of a consortium.

Batelco would partner with Millenium Private Equity, a Dubai Financial Services Authority regulated entity, to form Batelco Millenium India Company Limited to purchase shares in S Tel, which has start-up spectrum to operate in six Category ‘C’ circles, a release said. Finalisation of the purchase was subject to preconditions but full completion is expected by end of Q1 2009.

Expanding market

Batelco Chief Executive Peter Kaliaropoulos said the acquisition would provide significant growth opportunities for Batelco in the expanding Indian market, the third largest and fastest growing mobile market in the world, where mobile penetration was currently growing at 9 million to 10 million subscribers a month.

“We explored a number of investment opportunities in India and S Tel was judged to be the most suitable investment for Batelco’s entry into the Indian telecommunications market. Our priority now is to assist S Tel to rapidly roll out network infrastructure and offer mobile services to customers.”

Santosh Robert, director, S Tel, said he welcomed Batelco, an experienced operator in the mobile telephony market, to take part in development and growth opportunities in India.

S Tel is a Chennai-based company, promoted by Skycity Foundations Private Limited and Telecom Investments (Mauritius) Limited. S Tel received Unified Access Services Licences and start-up spectrum in Bihar, Orissa, Jammu & Kashmir, Himachal Pradesh, North East and Assam and a ‘Category A’ All-India ISP licence.

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