India Infoline.com:
Essar is buying out BPL Communications, the holding company. Rajeev Chandrasekhar (in the pic), Chairman and CEO, BPL Mobile, on Wednesday announced that he has entered into a binding agreement with the Essar Group, whereby the latter would acquire a controlling interest in BPL Communications. The deal is valued at over $1 billion (over Rs4.4 billion).
BPL Mobile had been approached by several leading Indian and International investors and had been in discussions with them over the last few months for selling a majority stake in the Company. This agreement is the culmination of a process that was initiated earlier this year by the Company and sets the tone for the creation of the largest pure play cellular operator in India under Hutchison Essar, BPL Mobile said in a statement.
BPL Communications owns a 74% stake in BPL Mobile Communications (which operates in Mumbai) and 100% ownership of BPL Mobile Cellular (operations in Maharashtra, Goa, Tamil Nadu, Pondicherry and Kerala).
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