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Proceedings against Siva started: Batelco

Source : BUSINESS_STANDARD
Last Updated: Sat, Nov 10, 2012 04:10 hrs

Bahrain's telecom operator Batelco Group has said its fully-owned subsidiary BMIC Ltd has started legal proceedings against Siva Ltd for recovering $184.8 million, saying its former Indian partner did not enforce the Settlement Agreement over its joint venture STel.

Batelco had acquired 42.7 per cent stake in STel via two transactions in May and June 2009 for a total of $174.5 million.

STel was among the operators whose licences were cancelled by the Supreme Court in February.

STel held licences in Assam, North-East, Bihar, Orissa, Himachal Pradesh and Jammu and Kashmir.

After the licence cancellation, Batelco became the first global firm to exit the Indian telecom market by selling its nearly 43 per cent stake in STel for $175 million.

The agreed time-frame for completion of the sale was October-end, 2012.

BMIC filed a claim in the UK High Court of Justice, Commercial Court, against Siva Ltd and Chinnakannan Sivasankaran, for failing to adhere to a Settlement Agreement, it said in a statement.

BMIC Ltd, a 100 per cent Batelco-owned subsidiary company, had entered into an Settlement Agreement in the fourth quarter of 2011 to sell its 42.7 per cent stake in STel. "BMIC is now pursuing legal action to enforce its rights under the Settlement Agreement and ensure Siva Ltd and Sivasankaran meet all their obligations, as agreed and in accordance with the jurisdiction of the Courts in England and Wales," the statement said.




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