Japanese telecom gaint Softbank recorded a loss of $350 million for last nine months of 2016 in the fair value of the Company’s investments in India. The loss comes on top of a $555 million writedown on the value of Softbank’s India portfolio in the six-month period ending September 2016. “With reference to the current markdown, portfolio…
NTT DOCOMO, INC. announced Monday that it submitted on January 3, 2015 a request for arbitration with Tata Sons Limited (Tata Sons), Tata Group’s holding company, pursuant to the shareholders agreement regarding the exercise of DOCOMO’s option to sell its stake in Tata Teleservices Limited (TTSL), a telecommunication service provider in India, as announced previously in a press release entitled “NTT DOCOMO Decides to Exercise Option for Sale of Stake in Tata Teleservices in India” issued on April 25, 2014.
Under the terms of the shareholder agreement between DOCOMO, TTSL and Tata Sons, DOCOMO exercised on July 7, 2014 its right (option) to request that a suitable buyer be found to purchase its TTSL shares for 50% of the acquired price, amounting to 72.5 billion Indian rupees (or 125.4 billion yen1), or a fair market price, whichever is higher.
Thereafter, pursuant to the shareholders agreement, DOCOMO submitted its request for arbitration to ensure that its right be exercised after Tata Sons had failed to fulfill its obligation, despite DOCOMO’s repeated negotiations with Tata Sons regarding the sale of its entire stake in TTSL.