Bharti Airtel has decided to walk out of the deal to buy business and assets of Mumbai-based Loop Mobile citing delay in approvals by the Department of Telecom (DoT).
“Loop Mobile and Bharti applied to DoT for approval of the business transfer in March 2014. The approval for the transaction is still awaited from the relevant authorities, as a result of which Bharti Airtel has withdrawn from the proposed transaction causing huge loss to the company,” Loop Mobile said.
Loop Mobile, therefore, will not be able to migrate its Subscribers to Airtel as originally envisaged, Loop added.
Loop Mobile entered into an MOU with Bharti Airtel in February 2014 for a transaction that entailed transfer of business assets and liabilities for a consideration of approximately Rs 700 crore.
Both the companies had applied to DoT for approval of the business transfer in March 2014.
Interestingly, Loop Mobile’s licence expires on November 29. The company says that it is making all arrangements for transition of existing subscribers.
Published 05 November 2014, 17:30 IST