Telecom service provider Bharti Airtel on Monday announced its definitive agreement with Loop Mobile to acquire its mobile operations in Mumbai.
The Sunil Mittal promoted Bharti Airtel did not share financial details.
In February, 2014, Bharti Airtel announced that it would buy the business and assets of Loop Mobile in Mumbai under a strategic agreement.
Though the Indian telecom industry was expecting strong consolidation in the market, the Airtel-Loop Mobil deal was the only one to see the light of the day in 2014. Business revival will assist the move for further consolidation, said a telecom operator CEO.
“With reference to the earlier announcement dated February 18, 2014 titled ‘Airtel and Loop Mobile announce agreement to create Mumbai’s largest mobile network’, Bharti Airtel Ltd has now informed the BSE that the Company has signed the definitive agreement with Loop Mobile (India),” said Airtel in a filing to the BSE.
The market is estimating that the size of the deal would be around Rs 700 crore.
Under the agreement, Loop Mobile’s 3 million subscribers in Mumbai will join Bharti Airtel’s over 4 million subscribers, making it the largest network in the metropolitan city.
Loop Mobile’s 2G-enabled network supported by 2,500 plus cell sites have 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 is expiring in November this year, with an option to access Airtel’s services.
