Japanese carrier, NTT Docomo, is reportedly planning to soon pull out its 26.5 percent share in the loss making Indian telecom venture Tata Docomo, for which it had partnered with Tata in India. The Reuters report suggests that NTT Docomo will exit the Indian market, which contradicts reports about Japan s NTT Docomo s decision on continuing its operation in India. Though NTT Docomo has not yet made any official statement, the report mentions that a formal decision will be taken at a board meeting today. Also Read - Reliance Jio adds 10.5 million subscribers in October 2018, inches closer to Bharti Airtel, Vodafone Idea
Update: NTT Docomo has announced that since Tata Teleservices has failed to achieve certain specified performance targets, NTT Docomo s board of directors have decided to sale out the company’s entire stake (1,248,974,378 shares, or about 26.5 percent of outstanding shares) in Tata Teleservices. The company has mentioned that its share in the joint venture with TTSL can be acquired for 50 percent of the acquisition price, which sums up to Rs 72.5 billion or a fair market price, which will be higher at the time of sale. Docomo plans to sell its shares in or before June 2014, as soon as the conditions for such exercise are met.
NTT Docomo has for long been rumored to exit from its loss making JV with Tata Teleservice. The company has been considering various options for continuing its operations in India however it has yet not come to a final decision. If NTT Docomo chooses to exit the partnership with the Tata Group, the latter will have to either look for a new partner of its choice, or buy NTT Docomo s share in the joint venture. Rumors so far have suggested that Tata was in talks with Sistema Shyam group, and more recently with Vodafone India for selling the stake of its Japanese partner.
The company had invested approximately Rs 16,000 crore in Tata Teleservices in 2009, but has been bearing losses. Recent reports however suggested that NTT Docomo had agreed on extending its partnership for another year.