Bharti Airtel to acquire Tata’s consumer mobile business

Bharti Airtel Ltd. is acquiring Tata’s consumer mobile business that will give the former a major subscriber base boost virtually for free and stem the bleeding for the latter from what is a loss-making venture.

The transaction will be done on a “debt-free cash-free” basis, the companies said in a joint statement, although Bharti Airtel will take over a “small portion” of Tata’s unpaid spectrum liabilities.

Tata Teleservices and Tata Teleservices (Maharashtra) Ltd. have more than 40 million subscribers and rank ninth in India’s telecom market, which had a total of 1.2 billion mobile subscriptions at the end of July.

As part of the deal, Tata’s mobile customers in 19 service areas will move to Bharti Airtel along with airwaves that Tata had purchased.

“Tata and Bharti Airtel will work together to further explore other mutual areas of cooperation,” the companies said.

The statement also said the firm was in the initial stages of exploring a combination of its enterprise business with Tata Communications Ltd. and its retail fixed-line and broadband business with satellite TV arm Tata Sky.

Tata would retain its stake in tower company Viom, and take care of the liabilities associated with it, the statement said.

Goldman Sachs advised Tatas on the deal.