Bangalore: In a major bid to consolidate its position in the telecom sector, Essar group today acquired a controlling stake in BPL Communication for over Rs 4,400 crore making it one of the largest acquisitions in the sector. BPL Mobile chairman and CEO Rajeev Chandrasekhar told reporters here that he and co-investors sold 64 per cent stake in the venture. The agreement was signed after highly competitive bidding by seven to eight foreign players, besides some very keen domestic players in the field, BPL Mobile officials said. "This could perhaps be one of the last legs of major consolidations in this sector," Chandrasekhar said, alluding to the creation of the largest pure play cellular operator in India under Hutch Essar. Explaining the choice of Hutch-Essar, he said, "The decision was partly emotional and partly rational. The group does not currently have a presence in Maharashtra, Tamil Nadu and Kerala and hence the entire acquisition process fitted in perfectly well. The deal follows Essar's recent consolidation of its position in its joint venture with Hong Kong-based Hutchison, operating in India under Hutch brand, by acquiring an additional 3.4 per cent equity. Essar had also recently approached the government for securing licences for seven more circles.
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