Business & Economy
NTT Docomo to sell its 26.5% stake in Tata Teleservices Limited by June
Mumbai, April 25, 2014
Japanese telecom services major NTT Docomo today said it had decided to exercise its option for the sale of its entire stake of 26.5 per cent in Tata Teleservices Limited (TTSL) as soon as the conditions for such exercise are met.
Tata Sons, NTT Docomo and TTSL had entered into a shareholders agreement (SHA) on March 25, 2009.
"Following its board meeting held on April 25, 2014, NTT Docomo has announced that it plans to exercise its sale option under the SHA as soon as the conditions for such exercise are met," a statement from Tata Sons said here.
"As also stated by NTT Docomo, it is not possible to predict how events will unfold; however, Tata Sons is cognisant of its responsibilities, and will act keeping in mind the interests of all stakeholders and in accordance with law.
"TTSL continues to be an integral part of the Tata group," the statement added.
Under the shareholders agreement, NTT Docomo holds the right to require that its TTSL shares be acquired for 50% of the acquisition price, which amounts to 72.5 billion Indian rupees (or 125.4 billion yennotice1) or a fair market price, whichever is higher, in the event that TTSL fails to achieve certain specified performance targets.
"In the event that TTSL fails to achieve these performance targets by the end of the fiscal year ended March 31, 2014, Docomo plans to exercise the above-mentioned right in or before June 2014. Docomo expects to sell its TTSL shares in accordance with the agreement. It is uncertain how the option will be performed, however, and Docomo is not able to predict how events will unfold," a statement by NTT Docomo said in Tokyo.