Bahrain's Batelco wins $211.1m from Indian partner

British court rules in telecom operator's favour after suing over deal to buy stake in S Tel in 2009

(Photo for illustrative purposes only)

(Photo for illustrative purposes only)

A British court has ruled in Batelco's favour, ordering the Bahraini telecom operator's former Indian partner to pay it $211.1 million for failing to fulfil a previous agreement, a statement to Manama's bourse said on Monday.

Batelco, via wholly-owned subsidiary BMIC, had sued Siva and its chairman Chinnakannan Sivasankaran for $174.5 million it paid Chennai-based Siva for a 43 percent stake in Indian operator S Tel in 2009, plus $10.3 million and a further $30,000 a day.

"The judgment totalling $211.1 million ... finds BMIC has been successful in its claim that the defendants failed to adhere to a settlement agreement relating to a commercial venture into which both parties had entered,"Batelco's statement said.

"The ruling confirms BMIC's claim and has ordered its full recovery from the defendants."

S Tel struggled against its better-resourced and longer-established rivals and as of 2011-end had 3.55 million mobile subscribers, a 0.4 percent market share.

In February 2012, S Tel was ordered to be stripped of its licences as part of a corruption probe that pre-datedBatelco's investment.

The Bahraini firm then announced it was selling its stake in S Tel back to Siva, but when Siva failed to pay by an October 2012 deadline, Batelco launched legal proceedings.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

NOTE: Comments posted on arabianbusiness.com may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Inside Google's brave new world

Inside Google's brave new world

The $500bn technology giant is extending its reach into hardware...

Under attack: how to beat the hackers

Under attack: how to beat the hackers

The smarter technology gets the more opportunities there are...

After all the hype, what's the future for Hyperloop One

After all the hype, what's the future for Hyperloop One

Los Angeles-based Hyperloop One may have struck a deal this month...

1
Most Discussed
  • 3
    UAE landlords set to get tougher on rental cheques

    Erm, what real estate recovery are they talking about? Expected by who exactly? One minute rents are dropping now they're rising? I don't think it's a... more

    Tuesday, 28 February 2017 1:23 PM - Mr. Abc
  • 2
    Dubai residents appeal to fix 'roundabout of doom'

    These 2 roundabouts (Arabian Ranches/Motor City & Studio City) are mostly choked and always dangerous, because of Schools, Offices and fast growing Residential... more

    Tuesday, 28 February 2017 1:22 PM - Anon
  • 2
    UAE salaries expected to rise, report says

    Nowadays people are struggling to secure a job in market and they are accepting offer which is less from their current package there is no chance of salary... more

    Tuesday, 28 February 2017 1:21 PM - Daljit Singh
sponsoredTracking