Bahrain firm to buy STel stake

Read more below

By OUR CORRESPONDENT
  • Published 15.01.10
  •  

New Delhi, Jan. 14: Bahrain-based Global Banking Corporation will acquire an 11 per cent stake in Chennai-based telecom operator STel.

STel is a joint venture between India’s Siva Group and Bahrain Telecom Company (Batelco). Sources told The Telegraph that Global Banking would make the investment through Batelco Millennium India Company, the investment vehicle through which Batelco holds a 49 per cent stake in STel.

In June, Batelco acquired a 42.7 per cent stake in STel for Rs 875 crore, valuing the company at over Rs 2,000 crore. Later, in September, Batelco acquired another 6.3 per cent for Rs 125 crore. However, no financial detail or shareholding structure is available.

Batelco, in its interim financial statement for the six months ended June 2009, said the group subscribed to 100 per cent of the capital of Batelco Millennium. Part of Siva Group, STel has majority shareholding (51 per cent) with Skycity Foundations — a private Indian company.

STel, a new operator, has acquired licence and spectrum for six circles — Orissa, Bihar, Himachal Pradesh, the Northeast, Assam and Jammu & Kashmir. It started services in Orissa, Bihar, Jharkhand and Himachal Pradesh last year.