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INDIA BUSINESS WORLD - 16th March To 31st March - 2009
JAPANESE TELECOM GIANT NTT DOCOMO CLOSES TATA TELESERVICES (TTSL) STAKE BUY BY PAYING $2.7 BILLION
JAPANESE telecom giant NTT DoCoMo has completed the purchase of 26% stake in Tata Teleservices (TTSL) by paying $2.7 billion. With this, DoCoMo has become a 26% shareholder in TTSL and will have three seats on the Tata firm’s board.
Tata Sons, the promoter of TTSL, has said that its transaction with DoCo-Mo has been completed. “DoCoMo has also completed its payment obligations under the tender offer and is preparing to acquire approximately 12% of the common shares of Tata Teleservices Maharashtra (TTML) through an open offer,” said a company statement in Mumbai.
TTML is the listed subsidiary of TTSL and its tender offer had closed on March 12. “We are delighted that all transaction formalities have been completed and regulatory clearances received,” TTSL MD Anil Sardana said.
“The Indian market and our subscribers will soon get to experience the benefits of differentiated products and services that our association with DoCoMo will enable us to offer,” he added.
The partners will now work to increase the enterprise value of both TTSL and TTML while creating synergies through their joint activities including a business and technology cooperation committee.
DoCoMo has over 50% share of the Japanese cellular market. It will work closely with TTSL management and provide know-how to help the company develop its mobile business. “TTSL expects to leverage DoCoMo’s expertise in the development and delivery of value-added services, where it is a firmly established market leader,” said the statement.
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