CCI approves Tata's bid to buy NTT DoCoMo's stake in TTSL
Tata Sons, along with four group companies including Tata Communications, will buy back a 21.63% share of Tata Teleservices after a long-running legal dispute
Trade regulator CCI has given Tata Communications’ parent company Tata Sons the go-ahead to buy NTT Docomo’s 21.63% stake in group firm Tata Teleservices.
Tata Sons filed to the CCI to buy the stake in TTSL alongside four other group firms, including Tata Communications as part of a $1.18 billion payment to its estranged Japanese partner.
The two companies have been locked in a long running legal disputed over an alleged breach of contractual obligations agreed upon when they launched Indian joint venture TTSL.
In June 2016 Tata Sons agreed to pay NTT DoCoMo $1.18 billion in damages for breaching a shareholder agreement.
Tata Sons failed to fulfil its obligation to find a buyer or buy back the Japanese partner’s 26.5% stake in joint venture Tata.
The decision was ordered by the London Court of International Arbitration. In 2009, DoCoMo bought a minority stake in the telecoms venture of Tata Group for $2.6 billion.
Following losses, the company announced last July that it had exercised its option to request that a suitable buyer be found to acquire its 26.5% stake in Tata Teleservices for 50% of the acquired price, or a fair market price, whichever was higher.
In January 2015, DoCoMo filed the arbitration request saying the Indian company had failed to find a buyer for DoCoMo’s stake.
In a tweet, the CCI said it has approved "Tata companies' acquisition of 21.63 per cent shareholding in Tata Teleservices from NTT Docomo".