Manama. Bahrain: Batelco in conjunction with STel Management, other STel shareholders and legal advisers are carefully studying the detailed judgement handed down by the Supreme Court of India on Friday 3 February 2012, which cancelled all 122 2G licences issued in 2008 and allocated spectrum granted to 8 operators, including STel.
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 Indian Supreme Court's recent judgement impacting the telecoms industry.
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.
Batelco holds 42.7% equity in STel since May 2009. As at 31 December 2011, Batelco's carrying value of its equity in STel is $123.3M.
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.
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.
As Batelco continues to grow and diversify its operations, it intends to explore all options to remain involved in the Indian telecommunications market.
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About Batelco
Batelco Group, listed on the Bahrain Bourse, is the leading integrated communications provider in the Kingdom of Bahrain and a company of reference among the region's key telecommunications players for innovation and customer experience.
Batelco serves both the corporate and consumer markets in the most liberalised and competitive environment in the Middle East region. It delivers cutting-edge fixed and wireless telecommunications services to its customers in Bahrain, Kuwait, Saudi Arabia, Jordan, Yemen, Egypt and India.
The Batelco Group of companies offers end-to-end telecommunications solutions for its residential, business and government customers in Bahrain on Next Generation, all IP fixed and 3.5G wireless networks, MPLS based regional data solutions and, GSM mobile and WiMax broadband services across the countries in which it operates.
This press release has been issued by Batelco Corporate Affairs department.
For further information, please contact Batelco Public Relations Office
Public.Relations@btc.com.bh / Fax +973 17611898
© Press Release 2012
