Airtel awaits regulatory nod to take over Loop's Mumbai ops
23 June 2014
Bharti Airtel, India's biggest telecom operator, confirmed today that it has signed a 'definitive' agreement with Loop Mobile to acquire its operations in Mumbai.
Airtel had announced in February that it would buy the business and assets of Loop Mobile in Mumbai under a strategic agreement. It is however yet to get full regulatory approvals for the agreement (See: Airtel confirms takeover of Loop Mobile; avoids disclosing deal size).
''With reference to the earlier announcement dated February 2014 titled 'Airtel and Loop Mobile announce agreement to create Mumbai's largest mobile network', Bharti Airtel Ltd has now informed the Bombay Stock Exchange that the company has signed the definitive agreement with Loop Mobile (India) Ltd,'' Airtel said in a filing to the BSE.
According to market estimates, the agreement is worth Rs700 crore, though the company did not disclose the size of the deal.
Under the agreement, Loop Mobile's three million subscribers in Mumbai will join Airtel's over four million subscribers, making it the largest network in the country's financial capital.
Loop Mobile's 2G-enabled network supported by 2,500-plus cell sites will also become part of Airtel's network which has over 4,000 cell sites at present.
The agreement will ensure continuity of services to the subscribers of Loop Mobile, whose licence will expire in November this year, with an option to access Airtel's services.