Batelco to review options for India unit
Manama, February 6, 2012
Batelco's India affiliate STel will review the sustainability of its operations under the revised terms imposed by a recent court order, a statement from the Bahrain telecom firm said.
Batelco said it was studying the recent judgement handed down by the Supreme Court of India, cancelling all 122 2G licences issued in 2008 and spectrum granted to eight operators, including STel, in which the company has a key stake.
Batelco, in conjunction with STel Management, other STel shareholders and legal advisers are carefully studying the detailed judgement, a statement said.
“Whilst the immediate focus is on STel's customers, employees and suppliers, STel shareholders will also review the sustainability of its business operations under the revised conditions imposed by the court's recent judgement impacting the telecoms industry,” it said.
Batelco was not involved in the STel licence application process nor had any knowledge of any of the events surrounding the granting of the 2G licences in January 2008, it said.
Batelco holds 42.7 per cent equity in STel since May 2009. As at December 31, 2011, Batelco's carrying value of its equity in STel is $123.3 million, the statement said.
Batelco invested in STel following a diligence exercise with the support of financial and commercial advisers. It also received certain representations and warranties from STel's promoter regarding the validity of the licence, it said.
Batelco respects and abides by all legal and regulatory rulings and determinations in every market it operates. Batelco will review, together with other STel shareholders, all legal options following the handing down of the Indian Supreme Court judgement, the statement said.
As Batelco continues to grow and diversify its operations, it intends to explore all options to remain involved in the Indian telecommunications market, it added. – TradeArabia News Service