Bharti Airtel had announced in February that it would but the business and assets of Loop Mobile (erstwhile BPL Mobile) in Mumbai under a strategic agreement. However, the company is yet to get the regulatory approvals for the agreement.
Bharti Airtel has now informed the Bombay Stock Exchange (BSE) that the company has signed the definitive agreement with Loop Mobile (India) Ltd. in a brief stock market filing. The market estimate of the agreement is worth INR 700 crore, but the size of the deal is not yet disclosed.
The announcement of the agreement was made on 23rd June before market hours. Post announcement, Bharti Airtel rose 0.68% to Rs. 340.60 at 13:09 IST on BSE. 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.
Under the agreement, Loop Mobile’s three million subscribers in Mumbai will join Airtel’s over four million subscribers. This would make Bharti Airtel the largest network in the metropolitian city with over seven million subscribers. The agreement will ensure continuity of services to the subscribers of Loop Mobile in the city. The license of Loop Mobile is expiring in November this year itself, with an option to access Airtel’s services.
– Anand Thakkar
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