Tata Group seeks CCI nod to buy out DoCoMo’s stake in TTSL
By Express News Service | Published: 19th May 2017 12:51 AM |
MUMBAI: The Tata Group companies have knocked on the doors of fair trade regulator Competition Commission of India (CCI) for approval of stake buyout deal between NTT DoCoMo and Tata Teleservices.
Tata Sons and four other group firms jointly made a filing with CCI to acquire 21.63 per cent stake in Tata Tele, aggregating to roughly $1.18 billion to estranged partner NTT DoCoMo.
“Tata sons, Tata Steel, Tata Industries, Tata Communications and Tata Power propose to undertake a transaction, which will result in acquisition of equity shares of Tata Tele comprising 21.63 per cent of the paid-up equity share capital, by the acquirers from DoCoMo pursuant to certain consent terms entered into between Tata Sons and DoCoMo,” as per the agreement filed with CCI.
The deal was objected by RBI, but the Delhi High Court rejected RBI’s plea last month.
Tata Group is locked in a legal battle with Japan-based DoCoMo over the alleged breach of contractual obligations pertaining to the Indian joint venture— Tata Tele. DoCoMo, TTSL and Tata Sons had signed a shareholder agreement in March, 2009 for the business alliance, under which the Japanese major had also acquired a stake in Tata Tele.