Vodafone in talks with Khaitan for Loop Mobile buyout

Khaitan Group is reportedly planning to exit Loop Mobile and has begun talks with potential buyers, reports CNBC-TV18.

According to CNBC-TV18 sources, telecom major Vodafone is in exploratory talks with Khaitans for buyout. Vodafone has reportedly initiated meetings to evaluate the options.

Loop mobile promoters have sought a valuation of up to $500 mn.

The deal will help Vodafone hike its presence in Mumbai.

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Loop mobile currently has about 35 lakh subscribers and operates only in 900 MHz space in Mumbai.

Earlier, a CBI witness had said that Khaitan Group was the “ultimate holding company” of BPL Mobile Communication Ltd which later became Loop Telecom Pvt Ltd, an accused firm in a case arising out of the 2G spectrum scam probe.

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Essar group promoters Ravi Ruia and Anshuman Ruia and Loop Telecom promoters I P Khaitan and Kiran Khaitan and Essar group Director (Strategy and Planning) Vikash Saraf and three firms – ETHL, Loop Telecom Pvt Ltd and Loop Mobile India Ltd are facing trial in the 2G case.

However, Loop Mobile has called the reports of stake sale a mere speculation. The company said that they are exploring various options for licence renewal.

Vodafone also refused to comment on it.