Bahrain's telecom operator Batelco has said it is carefully studying the detailed judgement by the Supreme Court of India on February 3, in conjunction with STel Management, other STel shareholders and legal advisers.
The Supreme Court cancelled all 122 2G licences issued in 2008 to eight operators, including STel. Batelco invested in STel following a diligence exercise with the support of financial and commercial advisers, a company statement said.
It also received certain representations and warranties from STel's promoter regarding the validity of the licence.
While 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 Supreme Court's recent judgement impacting the telecoms industry.
"Batelco was not involved in the STel licence application process nor had any knowledge of any of the events surrounding the granting of the 2G licences in January 2008," the company 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. Batelco respects and abides by all legal and regulatory rulings and determinations in every market it operates.
Batelco will review, together with other STel shareholders, all legal options following the handing down of the Supreme Court judgement. As Batelco continues to grow and diversify its operations, it intends to explore all options to remain involved in the Indian telecommunications market.
