Batelco said it will review “all legal options” following the Indian Supreme Court’s decision to cancel all 122 of the 2G licences awarded in 2008.
Batelco, which has held 42.7% equity in Indian mobile operator STel since May 2009, said that it was working with STel’s management, shareholders and legal advisers to study the judgement handed down by India’s Supreme Court, which last week cancelled the 2G licences along with spectrum that had been granted to eight operators, including STel.
“As Batelco continues to grow and diversify its operations, it intends to explore all options to remain involved in the Indian telecommunications market,” the telco said in a statement.
“Whilst the immediate focus is on STel's customers, employees and suppliers, STel shareholders will also review the sustainability of its business operations under the revised conditions imposed by the Indian Supreme Court's recent judgement impacting the telecoms industry,” Batelco said.
Batelco added that it was not involved in the STel licence application process. “Batelco invested in STel following a diligence exercise with the support of financial and commercial advisers. It also received certain representations and warranties from STel's promoter regarding the validity of the licence,” the telco said.
Batelco holds 42.7% equity in STel since May 2009. As at 31 December 2011, Batelco's carrying value of its equity in STel is $123.3 million.