savramesh 37 Report post Posted April 3, 2009 NDTV Profit Thursday, April 02, 2009 (New Delhi) Loop mobile, which has been on the block for almost a year, may finally have found a buyer. NDTV learnt from sources that Aircel is interested in buying out Loop mobile, as it will allow Aircel a smooth entry into the Mumbai circle. The Ruias at the Essar group have been keen to hive off Loop mobile, earlier known as BPL mobile, for quite some time. But an arbitration battle with partner Vodafone on ownership has meant that the deal could never happen. Nonetheless, things could change for the Ruias and although the arbitration case hasn't ended, Aircel can enter Loop's Mumbai operations. According to sources, Loop’s acquisition will not only provide Aircel a ready infrastructure in Mumbai, but also 2 million subscribers of Loop's Mumbai operations. Aircel, which recently launched its operations in Delhi, is expected to decide next week on when to start a due diligence for Loop mobile. It has already outlined a $5 billion capex plan to emerge a pan India player in the next few years. However, both the companies are denying the reports of stake sale. Aircel says, "It’s market speculation and a rumour—not true" Meanwhile, in this whole deal, the valuation figures are still unclear. Everything will depend on how Essar is able to resolve arbitration with Vodafone, which means, the latter that to have already paid for Loop mobile will probably need to be compensated, a task which the Ruias will have to accomplish before closing the deal. Share this post Link to post Share on other sites
