BPL Mobile on Tuesday made a Mauritius based equity fund its stakeholder for a consideration of USD 80 million, as part of efforts to raise funds for expansion and purchase of stake in Mumbai-based Loop Telecom. BPL Mobile has issued approximately 17 per cent equity to the company owned by an international equity fund investing in emerging markets.

A BPL Mobile spokesperson said that the company has raised about USD 80 million from this issue and the proceeds have been used for BPL Mobile’s expansion in Mumbai and its stake in Loop Telecom. Loop Telecom is a majority owned subsidiary of BPL Mobile that recently got a pan-India mobile licence and paid a licence fee of Rs 1,400 crore.

With an arbitration panel restraining Essar from going ahead with any stake sale in Loop Telecom, BPL believes that “this capital issuance was not in violation of the operative interim order of arbitrators.”

The arbitrators in their hearing on September 5, 2008 had asked BPL Mobile and its shareholders to maintain status quo in BPL Mobile, meaning that no fresh issuance of equity and sale of its existing shares in Loop is to be made without their approval.

Commenting on arbitration panel’s interim order on Vodafone Essar JV, an Essar spokesperson said, “The arbitration matter between BPL and Essar is a legacy issue pertaining to a dispute between Hutchison and BPL that did not get resolved at the time of Vodafone’s transaction with Hutchison.”

“This matter has been inherited by Vodafone Essar and does not impact Vodafone Essar business. The matter is subjudice and both parties have agreed to let the dispute be settled by ongoing arbitration,” he said.

Source: ET