NTT Docomo continues holding 11.76% in Tata Tele Maharashtra

MUMBAI: Japanese telecom firm NTT Docomo continues to hold 11.76% stake in Tata Teleservices Maharashtra Limited (TTML) although it has exited the Indian telecom firm’s parent company Tata Teleservices (TTSL), the Indian company said on Wednesday.

“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, including all rights of Docomo in relation to TTSL and TTML contained therein, automatically stands terminated,” TTML said in a filing with the Bombay Stock Exchange on Wednesday.

“However, Docomo continues to directly hold 11.76% of TTML equity share capital.” Tata Sons, holding company of the Tata group, had on Tuesday paid $1.2 billion to NTT Docomo on Tuesday, as per the arbitration that brought an end to a longstanding tussle between the two operators.

Debt-laden TTSL was entangled in a legal tussle since April 2014, when NTT Docomo decided to sell its entire 26.5% stake in Tata Teleservices and withdraw from the telecom operator in India.

Ending an almost three-year fight, the Delhi High Court in April allowed Tata Sons to pay NTT Docomo a $1.17 billion arbitration award upon termination of their telecom joint venture. The financial challenges and changes in Tata Teleservices business prompted Docomo to seek an exit.

TTSL last month announced the sale of its consumer mobile business to Bharti Airtel. “Concurrent with the receipt of the above amount, all shares in TTSL held by Docomo have been transferred to Tata Sons and companies designated by Tata Sons,” Docomo said in a statement on its website on Tuesday