Bahrain: Batelco in Joint Venture Settlement Agreement Dispute with Indian Firm

Analysis

Bahrain-based Batelco has announced it has issued litigation proceedings against its former partner, Indian-based Siva for US $185 million over allegations they had failed to honour their S Tel joint venture settlement agreement agreed on 30 November 2011.

Background

In February 2012, Batelco agreed to sell its 43% stake in S Tel to hedge fund Sky City Foundation for US $175 million (this being the price it had paid in 2009 to acquire the company)

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 a 31 October deadline for it to receive monies due.

Further information

Batelco's subsidiary, BMIC Limited, has filed the claim in the UK's High Court.

First reported on the Middle East Telecoms News Wire on 8 November 2012.