Middle East-based operator group Batelco is set to sell its stake in Indian operator STel, following the long-standing uncertainly over the status of 2G licences previously issued in the country.

In a statement, the company said that the move forms part of “an earlier understanding with its Indian partner to exit, given the circumstances surrounding the 2G probe in India over the past twelve months.”  Shaikh Mohamed bin Isa Al Khalifa, its CEO (pictured), said an agreement was entered into in the fourth quarter of 2011.

The company is selling its 42.7 percent stake in STel to Sky City Foundation for US$174.5 million. This is the same price that it paid for the equity, acquired in two transactions in 2009.

Indeed, Batelco previously noted that it was not involved in STel’s licence application, “nor had any knowledge of the events surrounding the granting of the 2G licences in January 2008.”

The group said that it had decided “as early as April 2011” to actively pursue the sale of the business, with the company accounting for the STel stake as an “asset held-for-sale” in the interim. Batelco said the agreed timeframe for the completion of the sale is the end of October 2012.

The Indian government last month announced the cancellation of a number of 2G licences held by businesses in the country. Yesterday, Telenor announced a US$712 million write-down in the value of its Indian business as a result.

“As Batelco continues to grow and diversify its operations, we remain interested in other investment opportunities for the Batelco Group that will enable us to participate in the Indian telecom market. We are actively exploring all options in this respect over the coming months,” the executive concluded.