Shareholder pact to be considered in TTSL stake sale: Docomo
24 Nov 2014 10:41 PM GMT
Japanese telecom giant NTT Docomo says it will go by its shareholder agreement with Tatas in selling its entire 26.5 per cent stake in Tata Teleservices Ltd (TTSL) and exiting the joint venture.
‘We intend to proceed with our option for the sale of our entire stake in Tata Teleservices according to the shareholder agreement,’ NTT Docomo said.
The company is reported to be looking at moving international arbitration regarding its stake sale with nothing materialising ever since it announced plans to sale stake in TTSL in April.
‘We decline to comment on further details of the sale,’ it added. When contacted, a Tata Sons spokesperson said: ‘As also stated by NTT Docomo, it is not possible to predict how events will unfold; however, Tata Sons is cognizant of its responsibilities, and will act keeping in mind the interests of all stakeholders and in accordance with law.’
NTT Docomo had in April this year announced plans to exit the loss-making joint venture with the Tata Group by selling its 26.5 per cent stake. The Japanese firm had said that as per the 2009 agreement that formed Tata Teleservices, Docomo can sell the shares if the JV fails to meet performance targets in the fiscal year that ended on 31 March.
The sale price would be 50 per cent of the acquisition price, which comes to Rs 7,250 crore, or a fair market price, whichever is higher, it added. Docomo, TTSL and Tata Sons had in March 2009 signed shareholder pact for business alliance. Docomo picked up 27.31 per cent stake in Tata Teleservices for Rs 12,924 crore and 20.25 per cent in Tata Teleservices (Maharashtra) Ltd - the listed arm of TTSL - for Rs 949 crore. Overall, Docomo holds 26.5 per cent in Tata Teleservices.
‘We intend to proceed with our option for the sale of our entire stake in Tata Teleservices according to the shareholder agreement,’ NTT Docomo said.
The company is reported to be looking at moving international arbitration regarding its stake sale with nothing materialising ever since it announced plans to sale stake in TTSL in April.
‘We decline to comment on further details of the sale,’ it added. When contacted, a Tata Sons spokesperson said: ‘As also stated by NTT Docomo, it is not possible to predict how events will unfold; however, Tata Sons is cognizant of its responsibilities, and will act keeping in mind the interests of all stakeholders and in accordance with law.’
NTT Docomo had in April this year announced plans to exit the loss-making joint venture with the Tata Group by selling its 26.5 per cent stake. The Japanese firm had said that as per the 2009 agreement that formed Tata Teleservices, Docomo can sell the shares if the JV fails to meet performance targets in the fiscal year that ended on 31 March.
The sale price would be 50 per cent of the acquisition price, which comes to Rs 7,250 crore, or a fair market price, whichever is higher, it added. Docomo, TTSL and Tata Sons had in March 2009 signed shareholder pact for business alliance. Docomo picked up 27.31 per cent stake in Tata Teleservices for Rs 12,924 crore and 20.25 per cent in Tata Teleservices (Maharashtra) Ltd - the listed arm of TTSL - for Rs 949 crore. Overall, Docomo holds 26.5 per cent in Tata Teleservices.
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