Japanese telecom firm NTT Docomo continues to hold 11.76 per cent stake in Tata Teleservices Maharashtra limited (TTMl) even as it has exited the Indian telecom firm’s parent company Tata Teleservices.
“Docomo has ceased to hold any shares in TTSl and consequently the shareholders agreement dated March 25, 2009 entered between TTSl, Docomo and Tata Sons limited, including all rights of Docomo in relation to TTSl and TTMl contained therein, automatically stands terminated," TTMl said in a BSE filing on Wednesday.
Tata Son’s has paid over $1.2 billion to Japan's largest mobile firm NTT Docomo to honour the agreement between the two firms.
“However, Docomo continues to directly hold 11.76 per cent of the equity share capital of TTMl,” Tata Teleservices Maharashtra ltd said in the filing. DoCoMo in November 2009 acquired 26.5 per cent stake in Tata Teleservices for about Rs 12,740 crore (at Rs 117 per share).
This was as per a prior understanding that in case it exits the venture within five years, it will be paid a minimum 50 per cent of the acquisition price.