NTT DoCoMo has received the arbitration award of nearly 145 billion yen ($1.3 billion) from Tata Sons with regard to its 26% stake in Tata Teleservices, the Japanese major said. Concurrently, it has transferred all its shares in Tata Teleservices to Tata Sons. The development brings an end to a tumultuous eight-year relationship between the two Asian companies.
The move also paves the way for Tata Sons to merge Tata Teleservices' consumer mobile services business with Bharti Airtel. The $1.3-billion award includes DoCoMo's exit price from Tata Teleservices, interest and other costs.
DoCoMo had acquired a minority stake in Tata Teleservices for $2.7 billion in 2009. The investment had a clause that if Tata Teleservices failed to meet performance targets, then Tata Sons would have to buy DoCoMo's stake back for half of the sum it had invested.
Six years later, DoCoMo decided to pull out from the cash-guzzling, loss-making Tata Teleservices. But its exit was hindered by local laws and both DoCoMo and Tata Sons were entangled in a legal battle within and outside of India. Finally, in April 2017, the Delhi high court upheld DoCoMo's $1.3-billion arbitration award that it had the won in a London court.
In a statement on its website, NTT DoCoMo said it “has received from Tata Sons payment of the award amount in accordance with the high court of Delhi's decision regarding DoCoMo's stake in Tata Teleservices“.
The move also paves the way for Tata Sons to merge Tata Teleservices' consumer mobile services business with Bharti Airtel. The $1.3-billion award includes DoCoMo's exit price from Tata Teleservices, interest and other costs.
DoCoMo had acquired a minority stake in Tata Teleservices for $2.7 billion in 2009. The investment had a clause that if Tata Teleservices failed to meet performance targets, then Tata Sons would have to buy DoCoMo's stake back for half of the sum it had invested.
Six years later, DoCoMo decided to pull out from the cash-guzzling, loss-making Tata Teleservices. But its exit was hindered by local laws and both DoCoMo and Tata Sons were entangled in a legal battle within and outside of India. Finally, in April 2017, the Delhi high court upheld DoCoMo's $1.3-billion arbitration award that it had the won in a London court.
In a statement on its website, NTT DoCoMo said it “has received from Tata Sons payment of the award amount in accordance with the high court of Delhi's decision regarding DoCoMo's stake in Tata Teleservices“.
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