Batelco sues ex-Indian partner for $185 million
08 November 2012 |
Bahrain’s Batelco is suing its former Indian partner Siva Ltd. for $185 million, claiming that the company has failed to adhere to a settlement agreement over their joint venture S Tel.
BMIC Limited, the Bahraini company’s fully owned subsidiary, has filed a claim in the UK High Court of Justice, Commercial Court against Siva.
Batelco decided to leave the Indian market after S Tel and other operators had their 2G licences cancelled by the Indian Supreme Court in February.
It agreed the $175 million sale of its 43% stake in S Tel back to Sky City Foundation, the same amount it paid to acquire the holding in 2009 from the hedge fund consortium.
The carrier said previously that the deal would be completed in the fourth quarter and in mid-October Batelco’s CEO told reporters there was an October 31 deadline to receive the money.
“The parties had agreed on November 30 2011 to settle a dispute arising from their involvement in a commercial venture in India and executed a Settlement Agreement.”
“BMIC Limited is now pursuing legal action to enforce its rights under the settlement agreement and ensure Siva Limited and Mr. Chinnakannan Sivasankaran meet all their obligations, as agreed and in accordance with the jurisdiction of the courts in England and Wales,” Batelco said in a statement.
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