Business Standard reports that Essar Teleholdings will buy BPL communications in a transaction worth Rs 4400
5200 crores, making it one of the largest acquisitions in India. Hutchison Whampoa will continue to have a majority stake in the entity to be created after the merger of BPL’s mobile business with Hutchison Essar.
The merged company will have an all-India presence in 21 circles of the total 23 circles in the country. By acquiring BPL Cellular, the company will get access to Maharashtra, Kerala and Tamil Nadu circles, where it does not have operations. The presence would be a competition to AirTel, which operates in all 23 circles and Reliance Infocomm that has a presence in 21 circles.
After the merger, the combined market share of the new entity in the Mumbai market would be over 55 per cent, he said. The combined entity will have a total subscriber base of 11 million across 21 circles and will be the largest GSM operator in the country.
It will have total revenues of close to Rs 4,500 crore with BPL Communications coming in with Rs 1,100 crore.