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Global Banking Corporation (GBCorp) and Batelco Group have taken the first step forward in a strategic partnership for the acquisition by GBCorp of an 11 per cent stake in S-Tel India, - a joint venture telecom company established between the Batelco and the Siva Group, India.
GBCorp vice-chairman and managing director, Abdul Rahman Mohammed Al Jasmi, said: "We are greatly pleased to partner with the Batelco Group in their joint venture telecom project in India. Batelco has an excellent record of accomplishment in establishing a footprint across the region, with operations in seven markets across the Middle East, North Africa and now Asia.
"The partnership with Batelco is a significant measure of our way forward strategy of building investment bridges through strategic partnerships, identifying new investment opportunities and diversifying our investment portfolio."
"We are delighted and welcome GBCorp as our investment partner in BMIC Limited, a company which will hold a 49 per cent stake in S-Tel India, subsequent to GBCorp's investment," said Peter Kaliaropoulos, Batelco Group chief executive.
"Effective partnerships with other telecom operators and strategic investors have been a successful formula, as we are expanding into new markets," he added.
"Our investment in S-Tel India is part of Batelco's growth and expansion strategy in wireless and broadband markets. We explored a number of investment opportunities in India and S-Tel was judged to be the most suitable investment for Batelco's entry into the Indian telecommunications market and it fits with our long-term plans to diversify our geographical footprint and dramatically increase our scale.
"Since launching operations in December, S-Tel has acquired more than 300,000 customers in just three services areas out of six. Together with our investment partners, GBCorp and the Siva Group, we aspire to make S-Tel a leading and formidable operator in India's rural sector."
Ahmed Al Khan, senior executive director, head of investment banking at GBCorp, said: "As an investment bank, our first priority is to ensure that any investment opportunity conforms with our stringent risk mitigation parameters and due diligence measures.
"Our key focus has been in identifying and addressing the key risk quadrants, i.e compliance, operational, financial and strategic, thereby ensuring the ideal synergy in terms of partnerships and at the same time, adhering to the prescribed financial investment model to ensure sustainable cash flows."
Finalisation of GBCorp's investment is subject to preconditions, including approval of Foreign Investment Promotion Board of the Government of India.
