Within days of Supreme Court scrapping 122 2G licences, global telecom firm Bahrain Telecom today announced that it has agreed to sell its entire 43% stake held in STel for $175 million.
Bahrain Telecom will be the first foreign telecom firm exiting the Indian telecom market.
"This is a part of an earlier understanding with its Indian partner to exit, given the circumstances surrounding the 2G probe in India over the past 12 months," Bahrain Telecom (Batelco) said in a statement.
Batelco had acquired 42.7% stake in STel via two transactions in May and June 2009 for a total of $174.5 million.
STel had bagged 2G licences in January 2008 in six circles which have been cancelled by the apex court last week on the basis that these and others were given in illegal manner by former telecom minister A Raja.
"BMIC Limited, a 100% Batelco-owned subsidiary company, entered into an agreement, in the fourth quarter of 2011 to sell its 42.7% stake in STel for $174.5 million to its Indian partner, Sky City Foundation Limited," Batelco's Group Chief Executive Shaikh Mohamed bin Isa Al Khalifa said in a statement.
Also Read
The agreed time frame for completion of the sale is the end of October, 2012.
STel held licences in Assam, North-East, Bihar, Orissa, Himachal Pradesh and Jammu and Kashmir and the company is estimated to have a subscriber base of over 3.6 million.
STel officials could not be contacted for comments.
This comes close on heels of another global player Telenor, the majority shareholder in Uninor, writing off about $721 million after the Supreme Court's decision.