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