Batelco completes second phase of deal with S Tel, India

Previously on May 10th, Batelco Chairman Shaikh Hamad bin Abdulla Al-Khalifa announced that Batelco had completed the necessary formalities to finalise the acquisition of a 36.69% shareholding in S Tel.

Peter Kaliaropoulos, Batelco Group CEO, said:

"We have been working very closely with our partners and we are looking forward to the launch of full services from S Tel during Quarter 4 this year."

"We are working tirelessly to meet our commitments to ensure the success of this venture, the first for Batelco outside of the GCC and Middle East region," he added.

S Tel has licenses to operate in 6 Indian states - Bihar, Orissa, Jammu & Kashmir (J&K), Himachal Pradesh, North East and Assam (NESA). S Tel was established to gain entry into the rapidly growing mobile markets of North East and North West India. With the population in these areas around the 230 million mark and mobile penetration less than 20%, S Tel aspires to grow rapidly, in response to the needs of these largely untapped areas, by focusing on delivering innovation and value.

Mr. Kaliaropoulos stated that the investment in S Tel will provide significant growth opportunities for Batelco in the expanding Indian market, the third largest and fastest growing mobile market in the world, where mobile penetration is currently growing at more than 11 million subscribers a month.

"We are delighted to have completed the second stage of this acquisition which enhances our growth and expansion strategy in wireless and broadband markets and advances our long term plans to diversify the Group's geographical footprint," he said.

S Tel's CEO Shamik Das stated that with Batelco's backing and experience in many telecommunications environments and Sterling Group's (Batelco's joint venture partners in S Tel) experience of running successful telecom operations in the 'low realisation per minute' Indian market, S Tel is all set to contribute in a big way to enhancing India's teledensity in Orissa, Bihar, J&K, Himachal Pradesh and NESA in the near term.

"S Tel has already benefited operationally by leveraging Batelco and the Sterling Group's know-how. Together we will play a significant role in shaping the future Indian telecommunication landscape especially in rural areas," said Mr. Das.

Mr. Kaliaropoulos said that Batelco plans to continue its regional expansion drive through targeted acquisitions of other operators and licences in MEA, India and Asia Pacific, while maintaining its market leadership in Bahrain, striving always to deliver better value and innovation for its customers and supporting many community and humanitarian initiatives in Bahrain.

Batelco, the leading integrated telecommunications company in Bahrain, with the addition of the India shareholding, now has operations in 7 markets across the Middle East, North Africa and Asia.