NTT DoCoMo may sell out its 26% stake in Tata Tele
Japanese telecom major NTT DOCOMO, may exit pan-India telecom service provider Tata Teleservices, by selling its 26% equity in the company.india Updated: Sep 23, 2013 00:48 IST
Japanese telecom major NTT DOCOMO, may exit pan-India telecom service provider Tata Teleservices, by selling its 26% equity in the company.
NTT DOCOMO has an option to sell its stake to the Tata group at a 50% premium over the original investment, if the Tata firm does not meet certain parameters by March 31, 2014. Sources said the Japanese major may exercise this option. Tata Group is exploring the possibility of finding a buyer for NTT DOCOMO’s shares.
The Japanese company bought 26% equity in Tata Tele in 2008 for `13,070 crore. Terms of investment included a clause that Tata Sons, the holding firm of the Tata Group, is obliged to buy the stake at a higher end of the fair value or 50% of subscription price.
If NTT DOCOMO sells the stake at lower price, Tata Sons would need to compensate the difference.
The two companies did not respond to HT’s emails.