NTT DOCOMO to increase its stake in Tata Teleservices Limited

NTT DOCOMO reportedly plans to up its stake in Tata Teleservices Limited (TTSL), say news reports.

As per the shareholding agreement inked in 2008, NTT DOCOMO has the option to increase its stake via the ?two call? option. The company can exercise this in 2012 and 2014 for this purpose.

Also, the covenants under the shareholder agreement signed between the two companies permit DOCOMO to raise its stake if TTSL is able to meet certain performance parameters. These include reaching a particular user base and annual subscriber addition figure and registering minimum revenues and profits in a specified time frame, etc.

In fact, as per the agreement, TTSL can also mandatorily buy out DOCOMO’s entire stake in 2014 if the Japanese company is unable to find a strategic investor or the Indian partner is unable to meet predefined performance parameters.