Islamic investment bank Global Banking Corporation (Gbcorp) is in the process of acquiring an 11% stake in S-Tel from Batelco.
Bahraini Gbcorp will undertake the transaction through a strategic partnership with Batelco and will carry out the acquisition…
Islamic investment bank Global Banking Corporation (Gbcorp) is in the process of acquiring an 11% stake in S-Tel from Batelco.
Bahraini Gbcorp will undertake the transaction through a strategic partnership with Batelco and will carry out the acquisition through investment vehicle BMIC, the same vehicle through which Batelco holds its stake.
Batelco CEO Peter Kaliaropoulos said: “We are delighted and welcome Gbcorp as our investment partner in BMIC Limited, a company which will hold a 49% stake in S Tel India, subsequent to GBCORP’s investment… We value GBCORP’s tremendous investment banking expertise and vision to team up with the Batelco Group and participate in diversifying its investment base, creating value from growth opportunities in India – one of the fastest growing telecom markets in the world.”
No financial details were disclosed.
BMIC itself is a partnership between Batelco and Millennium Private Equity, a Dubai Financial Services Authority.
The deal is subject to approval by the Foreign Investment Promotion Board (FIPB) of India.
S Tel is a JV between India’s Siva Group and Batelco.
Last year, Batelco pumped US$225m into the firm for a 49% stake.
Gbcorp vice chairman & MD, Abdul Rahman Mohammed Al-Jasmi, said: “The partnership with Batelco is a significant measure of our way forward strategy of building investment bridges through strategic partnerships, identifying new investment opportunities and diversifying our investment portfolio.”
S Tel holds mobile licenses for six states, in the so called C circles, and has commenced services in Orissa, Bihar & Jharkhand, Himachal Pradesh.
