Bahrain government buys C&W’s Batelco share out!

This off the presses:

LONDON (AP) – Cable & Wireless PLC said Wednesday it will sell its 20 percent stake in Bahrain Telecommunications Co. BSC (Batelco) for $506.1 million to Bahrain government agencies.

The Middle Eastern monarchy will pay cash upon completion of the deal, expected in January, Cable & Wireless said in a statement.

Cable & Wireless’ stake will be bought by Bahrain Mumtalakat Holding Co. BSC, General Organization for Social Insurance, and The Pension Fund Commission. All three are existing shareholders of Batelco and each will acquire a third of the Cable & Wireless stake.

“The decision to sell our stake in Batelco is in line with our strategy to dispose of assets within the international portfolio where there is little likelihood of achieving management control,” Cable & Wireless International Chief Executive Harris Jones said.

Okay then… so in a few weeks Batelco will be a full Bahraini company with the government bolstering it’s position as the biggest shareholder. Therefore, one would think, that as it will be a government entity, and as the government – obviously – wants what is best for the country, will it then break it into smaller units and really open up the competitive telecommunications market space in order for us mere mortals to be able to get proper services at reasonable (and un-fettered/un-throttled/un-bandwidth-limited) costs?

Comments

  1. amal

    you think..?
    but why care what’s best for “us mere mortals”..? why improve the service..? why bother…?

    it’s not easy keeping optimism alive in these conditions..

  2. Chimi^

    the government – obviously – wants what is best for the country, will it then break it into smaller units and really open up the competitive telecommunications market space in order for us mere mortals to be able to get proper services at reasonable (and un-fettered/un-throttled/un-bandwidth-limited) costs?

    You wish, that’s all I can say.

    Keeping it the current way means more money to squeeze from us – all they care about is $$$$.

  3. SOHAIL

    WEL FOR ME BATELCO IS NOTHING BUT ANOTHER COMPANY WELL I HAVE 24 HOURS UNLIMITED ADSL NET AS I HAD ORBIT NET ( SATELLITE NET ) IN SAUDI ARABIA 8) 8) 8) WELL WHAT ACTUALLY IS BATELCO PEOPLE APPRECIATE MORE ABOUT VODAFONE

  4. Redbelt

    the government – obviously – wants what is best for the country, will it then break it into smaller units and really open up the competitive telecommunications market space in order for us mere mortals to be able to get proper services at reasonable (and un-fettered/un-throttled/un-bandwidth-limited) costs?

    WAAHHHAHAHAHA!
    Thats funny!

  5. Will

    Does this new ownership position enhance the govt’s ability to control or monitor the flow of information?

  6. Maverick

    Out of the frying pan and into teh fire dude! :grinnod: 😆

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  8. Cynical Irony

    Well I find it somewhat ironic as I continuously do; that Cable and Wireless have all of a sudden decided to sell their shares and flee the scenario just after a recent anecdote which I’m sure countless of us have heard through the grapevine that went along the lines that Batelco had approved and made a purchase of a Telecom Company in Jordan for 400 Million US, when the company was evaluated its market value was a mere 100 Million US. Leaving Batelco to deal with “an unexplainable” deficit of 300 Million. This deficit is believed to be proliferated as a loss across X number of the coming years. As I said this is through the grapevine obviously I havent read anything that was officially published??.. Just makes you wonder though, who pocketed the 300 Million? Or does it? Ironic eh?

    🙂

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  10. Cynical Irony

    Not just that, it also makes sense as to why suddenly the employee benefits are beginning to vanish like loan facilities, housing and many more. Within time major cost cutting strategies will be implemented. Now UN-ironically, the burden will be endured by none other than the common Bahraini..

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    mahmood

    Not if we can switch to other providers! And if what I know comes true, that won’t be too long of a wait. Let Mister PK deal with this. He and his company have already lost immense credibility with their erstwhile loyal shoppers.

  12. jasra jedi

    I think C&W are not doing so well at the moment. I also think that by having the GoB buying their share, they will be in a much better position to sell a minority stake, or, contemplate taking the company public. If they took it public, it would mean better transparancy, reporting, etc ..

Comments are closed.