Bahrain Islamic Bank Gbcorp Takes Stake In S Tel

By Reuters

  • 14 Jan 2010

VCCircle Quick Facts

--BMIC has, on January 18, 2009, agreed to purchase a 49% shareholding in S Tel Limited for $225 million.

--BMIC is a partnership between Batelco and Millennium Private Equity, a Dubai Financial Services Authority.


--In July 2009, Batelco's shareholding in S Tel Limited was 42.7%, suggesting that the balance stake is held by Millennium Private Equity.

--After GBCorp entry, this arrangement is likely to alter.

--S Tel holds mobile licenses for six states – category C circles – and has already commenced services in Orissa, Bihar & Jharkhand, Himachal Pradesh.


Reuters adds: Bahrain-based Islamic investment bank Global Banking Corporation (Gbcorp) will acquire an 11 percent stake in Indian telecom operator S Tel, the bank said on Wednesday.

S Tel is a joint-venture between India's Siva Group and Bahrain Telecommunications Co (Batelco) that started operations during the fourth quarter of last year.

Gbcorp is making its investment through BMIC, the investment vehicle through which Batelco took a stake in S Tel. BMIC will own a 49 percent stake in S Tel.


No financial details were disclosed in a joint statement of Batelco and Gbcorp. Batelco said in January 2009 the 49 percent stake in S Tel was worth $225 million.

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