Japan-based telecom company, NTT DOCOMO has filed an international arbitration case against Tata Group holding company Tata Sons Limited, claiming the latter failed to fulfill its obligation to find a buyer for the former?s stake in Tata Teleservices Limited (TTSL). The arbitration has been filed with the London Court of International Arbitration.
Earlier in April 2014, DOCOMO had announced its plans to exit TTSL by exercising its put option to sell its 26.5 per cent stake in the company. Subsequently, in July 2014, DOCOMO asked Tata Sons to find a suitable buyer for the purchase of the former?s TTSL shares for 50 per cent of the acquired price, amounting to Rs 72.50 billion (125.4 billion yen), or a fair market price, whichever is higher. This right was under the terms of the shareholders agreement between DOCOMO, TTSL and Tata Sons in 2009.
Tata Sons by virtue of their first right of refusal agreed to buy back DOCOMO?s stake. However, the deal has not been concluded owing to differences between the two companies.
DOCOMO, TTSL and Tata Sons had in March 2009 signed the shareholder agreement under which DOCOMO had picked up 27.31 per cent stake in Tata Teleservices for Rs 129.24 billion and 20.25 per cent in Tata Teleservices (Maharashtra) Limited for Rs 9.49 billion. Overall, DOCOMO holds 26.5 per cent stake in TTSL.
