The Japan-based telecom operator, NTT DOCOMO has stated that the company will sell the entire stake in Tata Teleservices Limited (TTSL) according to the shareholder agreement it signed with the Tata Group and TTSL in March 2009 for business alliance. As per the agreement signed in 2009, NTT DOCOMO holds the right that its shares in TTSL be acquired for 50 per cent of the acquisition price or a fair market price, whichever is higher, in the event that TTSL fails to achieve certain specified performance targets.
NTT DOCOMO holds 26.5 per cent stake in TTSL and had announced its plans to offload its entire stake in TTSL, which it had acquired for $2.61 billion between 2009 and 2011. The decision came after the TTSL failed to achieve certain performance targets by March 31, 2014.
Meanwhile, since nothing substantial has materialised on the stake sale after the announcement, NTT DOCOMO might now reportedly seek international arbitration regarding the sale in the joint venture.
