India's largest telecom operator Bharti Airtel acquired Loop Mobile that has mobile network which operates only in Mumbai circle. This makes Bharti becomes the top operator in Mumbai, with seven million subscribers followed by Vodafone with 6.8 million subscribers.Under the agreement, Loop Mobile’s three million subscribers in Mumbai will merge with Airtel’s over four million subscribers.
The deal is valued at Rs 700 crore. Loop will use these sale proceeds for repaying debt of Rs 400 crore and the rest will go to promoters IP Khaitan and family,making it debt free.
Meanwhile, Loop Mobile's spectrum license in Mumbai circle will expire by September 2014 but that will not affect services due to this deal. The company did not participate in the spectrum auction for 1800 MHz and 900 MHz scheduled this month.
The deal is valued at Rs 700 crore. Loop will use these sale proceeds for repaying debt of Rs 400 crore and the rest will go to promoters IP Khaitan and family,making it debt free.
Meanwhile, Loop Mobile's spectrum license in Mumbai circle will expire by September 2014 but that will not affect services due to this deal. The company did not participate in the spectrum auction for 1800 MHz and 900 MHz scheduled this month.