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Docomo files for arbitration in Tata Teleservices stake sale

2015-01-05 10:55:00| Telecompaper Headlines

(Telecompaper) Japanese mobile operator NTT Docomo has submitted a request before the London Court of International Arbitration for arbitration with Tata Sons, Tata Group's holding company, pursuant to the shareholders agreement regarding the exercise of Docomo's option to sell its stake in Indian operator Tata Teleservices (TTSL). Under the terms of the shareholder agreement between Docomo, TTSL and Tata Sons, Docomo exercised on 7 July 2014 its right to request that a suitable buyer be found to purchase its TTSL shares for 50 percent of the acquired price, amounting to INR 72.5 billion (approximately JPY 125.4 billion), or a fair market price, whichever is higher. Pursuant to the shareholders agreement, Docomo submitted its request for arbitration to ensure that its right be exercised after Tata Sons failed to fulfill its obligation, despite Docomo's repeated negotiations with Tata Sons regarding the sale of its entire stake in TTSL.

Tags: sale files stake tata

Category:Telecommunications

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