We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Thu 8 Nov 2012 09:43 AM

Font Size

- Aa +

Batelco sues Indian ex-partner for $185m

Bahraini telco claims Siva Ltd failed to adhere to settlement over joint venture S Tel

Batelco sues Indian ex-partner for $185m
(Image for illustrative purposes)

Bahrain Telecommunications Co (Batelco) is suing ex-partner Siva Ltd for US$185m, claiming the Indian firm has failed to adhere to a settlement agreement over their joint venture S Tel, the former monopoly said in a statement.

S Tel was one of eight Indian mobile operators ordered to be stripped of licences in February as part of a corruption probe.

Later that month, Batelco announced it had agreed to sell its 43 percent stake in S Tel back to Sky City Foundation Ltd for US$175m, receiving the price paid to acquire its S Tel holding in 2009.

At the time, Batelco said the deal would be completed in the fourth quarter, while in mid-October the firm's chief executive told reporters there was an Oct. 31 deadline for it to receive the money due.

Sky City Foundation is a hedge fund that was part of a consortium that also sold a 51 percent stake in S Tel to Siva Ltd in 2009, and Batelco has now launched legal proceedings via fully owned subsidiary BMIC Ltd against Siva and its founder Chinnakannan Sivasankaran.

"BMIC Limited filed a claim in the UK High Court of Justice, Commercial Court... for failing to adhere to a Settlement Agreement," Batelco said in an emailed statement, adding it was seeking to recover US$184.79m.

Siva and Sky City were not immediately available for comment.

Arabian Business: why we're going behind a paywall

For all the latest tech news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.