Batelco To Buy 49% Of India’s S Tel For $225M

January 19, 2009 at 15:28 Leave a comment

The Indian telecom story is gaining muscle. The latest to join the world’s second largest telecom market is Bahrain’s Batelco which has signed a deal to buy 49% in Chennai-based S-Tel, a GSM service provider, for $225 million.

The Indian telecom company has licences to operate in six circles in Bihar, Orissa, Jammu & Kashmir, Himachal Pradesh, North East and Assam. 

Santosh Robert, director, S-Tel, said the deal would enable his company to partner with an experienced operator for the GSM roll-out which is slated for the middle of this year. 

Batelco has partnered with Millennium Private Equity (MPE), a Dubai Financial Services Authority (DFSA)-regulated entity to form Batelco Millennium India Company Ltd (BMICL) a special purpose vehicle to purchase the shares in S Tel. The transaction would go in for formal approvals and it is expected to become operational upon receiving regulatory approval by the end of April this year. 

S-Tel was established to gain entry into the rapidly growing mobile markets of north east and north-west India. The population in these areas is approximately 230 million and mobile penetration rate is less than 20%. “We will focus on delivering innovation and value, and aspires to grow rapidly to respond to the needs of these largely untapped areas,” Robert said. 

Besides, Batelco being a mid-sized operator has a medium appetite for investment found S-Tel very attractive. “They were clear that they did not want to invest in a pan-India operator, instead were looking at a smaller company to invest, which is where we fit in very well,” Robert said. 

S-Tel is a Chennai-based company promoted by Skycity Foundations (P) Ltd and Telecom Investments, Mauritius. The company received unified access services licenses (UASL) and start-up spectrum in six category C circles, besides a category A all India internet service provider (ISP) licence.

Other major telecom deals include NTT DoCoMo’s 26% stake buy in Tata Tele for $2.70 billion, Etilasat’s 45% equity purchase in Swan Telecom for $900 million and Telenor’s buy of 60% in Unitech Wireless for $1.23 billion.

Wireless Industry News

Advertisements

Entry filed under: Asia, Bahrain, Batelco, GSM, India, Middle East, Mobile, Mobile Industry News, Mobile Network Operator, Mobile News, S-Tel, Telecom, Wireless. Tags: , , , , , , , .

Sony Ericsson Posts Sharp Q4 Loss Telekom Austria Group posts a rise of 15.2% in its subscriber base

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Trackback this post  |  Subscribe to the comments via RSS Feed


Feeds

Email Newsletter

Recent Posts

January 2009
M T W T F S S
« Dec   Feb »
 1234
567891011
12131415161718
19202122232425
262728293031  

Categories


%d bloggers like this: