NTT DoCoMo plans to sell 26.5% stake in Tata Teleservices
Japanese operator NTT DoCoMo is planning to sell its 26.5% stake in Tata Teleservices and exit its joint venture in India.
Tata Group is now likely to renegotiate the sum it has to pay to buy back the shares, ending an agreement between the two companies that has been in place since 2008-2009.
Rumours first surfaced of NTT’s plans to sell that stake in April this year.
According to local reports in India, the terms of the agreement stipulate that NTT must now get a higher share of the investment it first made, despite the fact that the joint group is making a loss.
NTT DoCoMo has requested a refund and will return a 26% stake to Tata Teleservices, with a deadline set for this month for the company’s response.
However, as Tata Teleservices is now making a loss, reports suggest NTT may not get the price it is looking for.
The company made two instalments totalling $2.7 billion in 2009 and 2011 for the stake.