New Delhi, Nov. Nov 5:
Bharti Airtel has called off its Rs.700-crore deal to acquire Mumbai-based Loop Mobile, according to sources.
But like every other definitive agreement this one was also time-bound and was due to expire Oct.30, 2014. These agreements also get renewed if both partiesy mutually agree to do so. But in this instance, it was not so, the source explained.
Loop and Bharti Airtel applied to the Department of Telecom (DoT) in March for approval. But the DoT is yet to give a nod to the deal as Loop Mobile and Loop Telecom owe around Rs.808 crore to the government in spectrum and other charges.
Going by the definitive agreement, Bharti Airtel would have added Loop Mobile’s three million customers (at the time of signing the agreement) in Mumbai after acquisition.
Loop’s permit in Mumbai is expiring in Nov.29, 2014. The company had around 17 lakh customer till August.
Both Loop Mobile and Bharti Airtel were immediately unavailable for comment.
Bharti Airtel’s stock closed at Rs.385.30 per share Wednesday in the Bombay Stock Exchange, down 2.70 percent.