Tata wins approval for DoCoMo stake in India JV
14 January 2015 |
Tata Sons has won approval from the reserve bank of India (RBI) to acquire NTT DoCoMo’s minority stake in their struggling joint venture, Tata Teleservices.
The RBI approval brings the companies closer to completing their long-overdue $1.1 billion deal; for which NTT DoCoMo filed an arbitration request with Tata Sons earlier this month.
Japan’s NTT DoCoMo first revealed plans to sell its 26.5% stake in Tata Teleservices in July 2014.
On December 22 last year, Reuters was privy to a memo from the RBI to the finance industry, which stated that the central bank was “inclined to accept” the proposal from Tata to acquire the DoCoMo stake in Teleservices, at half the $2.2 billion original price paid for the investment.
The RBI has requested for the finance ministry’s view.
Confirmed to reporters by a source directly involved in the matter, the approval is also thought to be part of the Indian government’s attempt to increase foreign investment.
“Our strategic relationship with Japan in recent times in relation to FDI (foreign direct investment) flows is also a matter to be kept in view,” the memo added.
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