Bahrain to Reduce Government Stake in Batelco
The Bahrain government plans to reduce its holding in the dominant telco, Batelco over the next three years, local media has reported. The aim of the sale is to free the company from government control and allow it to make decisions wholly based on commercial decisions.
Lowering the government holding would also make it easier for the company to buy overseas operators - as many other countries can be wary of allowing foreign government controlled firms investing in their infrastructure.
The government currently holds 36.7 percent of the shares in the telephone company through its holding company Mumtalakat. A further 20 percent is held by its investment vehicle Amber, while 10 percent by the General Organisation for Social Insurance (GOSI).
The remainder is floated on the local stock exchange, and the company has a valuation of around US$3.3 billion.
Posted to the site on 25th February 2008
