Japan?s NTT DOCOMO to retain investment in TTSL

Japan-based operator, NTT DOCOMO has decided to continue with its investment in Tata Teleservices Limited (TTSL), say news reports.

In 2013, NTT DOCOMO had the option of raising its stake to from 26 per cent to 33 per cent, however it did not exercise this option. Alternatively, it could have sold its stake back to the Tata Group by March 2014 at about half of Rs 130 billion it paid to acquire the holding in 2009 if TTSL failed to achieve goals including subscriber numbers, making a net profit and rolling out a certain number of towers.

NTT DOCOMO has decided not to exercise its ?put option? to sell 26 per cent stake in TTSL for about a year, in its efforts to provide the Indian company time to find a buyer and then get a higher valuation for its holding, or later reduce its stake in the new entity.