Hutch acquires BPL mobile for $1.15 B

By agencies   |   Tuesday, 27 September 2005, 07:00 Hrs
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MUMBAI: Just two months after the Essar group acquired BPL’s mobile business, Essar has sold the company to Hutchison for $1.15 billion.

In addition, the Essar group will also sell its Essar Spacetel, the company that has applied for licenses in seven telecom circles to Hutchison Essar $6 million in cash.

This deal will make Hutchison-Essar the third largest private mobile operator in the Country after Bharti Televentures and Reliance Infocomm with an nationwide network.

This will also increase Hutchison-Essar combined customer base to 12 million. Hutchison operates under the brand name Orange in Mumbai circle and as Hutch in other circles. This acquisition will add BPL's Mumbai, Tamil Nadu, Maharashtra and Kerala and Pondicherry circles to its footprint.

With the acquistion of Essar Spacetel, Hutchison Essar will complete its India footprint. Essar Spacetel is an Essar group company, which has applied for licenses in seven circles of Madhya Pradesh, the North-East, Himachal Pradesh, Bihar, Orissa, Assam, and Jammu & Kashmir where neither Hutchison Essar nor BPL have operations.

Ravi Ruia, Director of Hutchison Essar and Vice-Chairman of the Essar Group, said, "The consolidation of BPL's mobile services and Essar Spacetel with Hutchison Essar is another significant step towards making it one of India's most valuable companies.

"Hutch and BPL Mobile are among India's strongest mobile franchises and the synergy that this consolidation will bring is bound to offer high value and help us gain market share in every territory."

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