Japan’s NTT DoCoMo To Retain Investment In Tata telecom

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NTT DoCoMo has decided to stay put in its telecom joint venture with the Tata Group for at least another year, people aware of the development said, giving a breather to financially stressed Tata TeleservicesBSE 2.97 %, which would otherwise have had to pay top dollar to buy back the stake. The Japanese company had the option of raising its stake to 33% from its current 26% in 2013, which it chose not to exercise.

Alternatively, it could have sold its stake back to the Tata Group by March 2014 at about half the nearly Rs 13,000 crore it paid to acquire the holding in 2009 if the company failed to achieve goals including subscriber numbers, making a net profit and rolling out a certain number of towers, a banker familiar with developments told ET. Original Post at The Economic Times

Wahengbam Rorrkychand

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