Global Banking Corporation (GB Corp), a Bahrain-based Islamic investment bank, is making an investment of an undisclosed sum in S Tel, a new entrant in mobile services space in India. The investment will be made through BMIC Ltd, a unit of Bahrain Telecommunications Company (Batelco) and a joint venture partner in S Tel with Chennai-based Siva Group, said a statement issued by Siva Group.
BMIC has already signed an agreement with GB Corp for the investment. Post this investment, BMIC will hold a 49% stake in S Tel from 42.7% stake earlier. The remaining 51% stake will be held by Siva Group.
Though the company did not disclose the financials of this transaction in its statement, a report in Economic Times stated that GB Corp will be paying $50 million to BMIC and will in turn get 11% stake in S Tel. With this, the total investment of Betelco in S Tell will go up to $225 million. Earlier, it had invested $175 million for the 42.7% stake in S Tel.
Vaidyanathan Srinivasan, CEO & director of Siva Group said, “The strategic partnership with the Batelco Group and a strong investment bank like GB Corp will enable S Tel to make significant strides into the telecom market in India.”
S Tel currently has operational license for six Indian circles that include Orissa, Bihar, Himachal Pradesh (HP), North-East, Assam and Jammu &Kashmir. It has commenced operations in Orissa, Bihar and HP in December 2009, and plans to launch operation in Assam and North-East by the first quarter of 2010.