Batelco plans to increase stake in S Tel to 49 pc

NEW DELHI: Bahrain Telecommunications Company (Batelco) plans to increase its stake in S Tel to 49% in line with the earlier agreement between both companies.

Batelco has entered into a partnership with Bahrain-based Islamic investment bank Global Banking Corporation, which will acquire 11% stake in S Tel for $50 million, S Tel director P Swaminathan said. Post-transaction, Batelco will hold 49% stake in S Tel, a JV between Chennai-based conglomerate Siva Group and Batelco.

At present, the Siva group holds 57.3 % in the JV and Batelco 42.7%. Siva Group’s stake will now come down to 51%. With the acquisition of 11% more stake in S Tel, Batelco’s total investment in the telco will go up to $225 million. Earlier, it had brought in $175 million and now through Global Banking it is bringing in another $50 million, he added.