Tatas ordered to pay $1.17 billion to Japan's NTT DoCoMo
June 24, 2016  10:49
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Tata Sons has been ordered to pay Japan's largest mobile phone firm NTT DoCoMo US $ 1.17 billion as compensation for breaching an agreement on their India joint venture. 

The London Court of International Arbitration has ruled in favour of DoCoMo over the price it was entitled to for exiting the Indian joint venture, the Japanese firm said in a statement. 

In November 2009, Docomo had acquired 26.5 per cent stake in Tata Teleservices for about Rs 12,740 crore (at Rs 117 per share). Later, in April 2014, the company decided to exit after the joint venture struggled to grow subscribers quickly. 

DoCoMo said its 2008 investment was with an understanding that it would get at least 50 per cent of its acquisition price if it exits the Indian company in five years. 

Accordingly, it sought Rs 58 per share or Rs 7,200 crore from the Tatas to buy out the Japanese telecom major's 26.5 per cent stake in the loss-making Tata Teleservices for Rs 23.34 a share. The Japanese firm had filed for arbitration on January 5, 2015.

Image: Tata Sons chairman Cyrus Mistry
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