Bharti Airtel has signed a definitive agreement with Loop Mobile to acquire the latter?s operations in Mumbai.
Earlier, in February 2014, Bharti Airtel had signed a strategic agreement with Loop Mobile to buy its business and assets in the Mumbai circle for an undisclosed amount.
Bharti Airtel Limited has now informed the Bombay Stock Exchange that the company has signed a definitive agreement with Loop Mobile (India) Limited. According to Bharti Airtel, with reference to the earlier announcement dated February 18, 2014, the company along with Loop Mobile is entering in to an agreement to create Mumbai?s largest mobile network.
As per industry estimates, the deal is worth Rs 7 billion. Under the deal, Loop Mobile?s three million subscribers in Mumbai will join Bharti Airtel?s network which currently supports over four million subscribers, making it the largest network in the metropolitan city.
In addition, the deal will also bring together Loop Mobile?s 2G/EDGE enabled network supported by 2,500 plus cell sites, and Bharti Airtel?s 2G and 3G network supported by over 4,000 cell sites across Mumbai. It will also offer subscribers the widest exclusive retail reach with 220 outlets in the city. Further, as part of the deal, Loop?s other assets such as network equipment, will also be transferred. Furthermore, Loop Mobile?s Rs 4 billion debt will be transferred to Bharti Airtel.
