Bharti Airtel is seen as the frontrunner to buy Loop Mobile, one of India’s smallest mobile operators, multiple sources aware of the situation told the Economic Times.
Deal talks have been going on for a while and reportedly accelerated in recent…
Bharti Airtel is seen as the frontrunner to buy Loop Mobile, one of India’s smallest mobile operators, multiple sources aware of the situation told the Economic Times.
Deal talks have been going on for a while and reportedly accelerated in recent weeks. But a final agreement is dependent on greater regulatory clarity on M&A and licence fee guidelines, the local newspaper wrote.
Loop’s licence expires in September 2014 and it remains uncertain how much the company will need to pay to renew it.
Bharti Airtel, India’s largest wireless player, is said to be interested in Loop’s precious spectrum in the 900 MHz frequency band. A deal with Loop, number four in Mumbai with three million subscribers, would also allow Bharti to become the largest operator in India’s most populous city.
A spokesperson for Bharti declined to comment on the report, describing it as “purely speculative”. Loop Mobile was not immediately available for comment.
In the past, several other bidders reportedly expressed interest in Loop, including Idea Cellular, Malaysia-based Maxis and Norway’s Telenor.
In April last year Loop, then valued at approximately US$450m, shut down its operations outside of Mumbai after the Supreme Court ordered the cancellation of its 2G licences. The move impacted around 6,000 customers.
Bharti Airtel has been linked to several deals of late, including the sale of its Sri Lankan operations and of its landline assets.
