Siva Group’s S Tel announced that BMIC Ltd (BMIC) formed by its foreign strategic investor, Batelco is set to increase its stake in the JV to 49% through a partnership with Global Banking Corporation.

Mr. Vaidyanathan Srinivasan, CEO & Director of Siva Group said, “The increase in stake by BMIC reiterates their confidence in the strong growth potential that S Tel has in the telecom domain in India. The strategic partnership with the Batelco Group and a strong investment bank like GBCORP, will enable S Tel to make significant strides into the telecom market in India.”

“S Tel has Unified Access Services Licenses to operate in six Indian circles — Orissa, Bihar, Himachal Pradesh (HP), North-East, Assam and J&K and commenced operations in December 2009 in Orissa, Bihar and HP. In less than 4 weeks of its operations, STel has already acquired over 400,000 customers from its launch in 3 Circles,” he added.

The deal is subject to approval from the FIPB and is expected to close within first quarter of new fiscal starting in April.

Batelco had earlier in July last year raised its stake in the JV from 36.8% to 42.7%. 

“We are delighted and welcome GBCORP as our investment partner in BMIC Limited, a company which will, post GBCORP’s investment, hold a 49% stake of S Tel India” stated Peter Kaliaropoulos, Batelco’s Group Chief Executive.

“Effective partnerships with other telecom operators and strategic investors, has been a successful formula we have followed as we have expanded into new markets. We value GBCORP’s tremendous investment banking expertise and vision to team up with the Batelco Group and participate in diversifying its investment base and creating value from growth opportunities in India - one of the fastest growing telecom markets in the world” he added.