NTT DoCoMo to Exit Telecom JV with Tata Group

Published: 25th April 2014 01:57 PM  |   Last Updated: 25th April 2014 02:00 PM   |  A+A-


Japanese telecom firm NTT DoCoMo Inc today said it will exit its loss-making mobile phone joint venture with Tata Group by selling its 26 per cent stake.

Japan's largest wireless carrier by subscribers wants to sell the entire 26.5 per cent stake in Tata Teleservices it had bought for 266.7 billion yen (USD 2.61 billion) in 2009 and 2011.

Tata Group is likely to buy the stake.

In a press statement, DoCoMo said "its board of directors resolved today to exercise option for the sale of the company's entire stake (124.9 crore shares, or about 26.5 per cent stake) in Tata Teleservices Ltd (TTSL)."

Under the March 2009 agreement between DoCoMo, TTSL and Tata Sons Ltd - Tata Group's holding company, the Japanese firm "holds the right to require that its TTSL shares be acquired for 50 per cent 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," the statement said.

DoCoMo expects to sell its TTSL shares in accordance with the agreement.


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp