April 25, 2014
NTT DOCOMO Decides to Exercise Option for Sale of Stake in Tata Teleservices in India
TOKYO, JAPAN, April 25, 2014 --- NTT DOCOMO, INC., a personalized mobile solutions provider for smarter living, announced that its board of directors resolved today to exercise option for the sale of the company's entire stake (1,248,974,378 shares, or about 26.5% of outstanding shares) in Tata Teleservices Limited (TTSL), a DOCOMO-affiliated company accounted for by the equity method, as soon as the conditions for such exercise are met.
DOCOMO, TTSL and Tata Sons Limited (Tata Sons), Tata Group's holding company, concluded a shareholder agreement when DOCOMO entered into a business alliance with TTSL in March 2009. Under the agreement, DOCOMO holds the right to require that its TTSL shares be acquired for 50% of the acquisition price, which amounts to 72.5 billion Indian rupees (or 125.4 billion yen1) or a fair market price, whichever is higher, in the event that TTSL fails to achieve certain specified performance targets (the above-mentioned option).
In the event that TTSL fails to achieve these performance targets by the end of the fiscal year ended March 31, 2014, DOCOMO plans to exercise the above-mentioned right in or before June 2014. DOCOMO expects to sell its TTSL shares in accordance with the agreement. It is uncertain how the option will be performed, however, and DOCOMO is not able to predict how events will unfold. The effect on DOCOMO's corporate earnings for the fiscal year ending March 31, 2015 cannot be forecast at this time due to these uncertainties.
(Open a PDF file)(Attachment) About TTSL, and Tata Sons (PDF format: 7KB)
About NTT DOCOMO
NTT DOCOMO provides innovative, convenient and secure mobile services that enable smarter living for each customer. The company serves over 63 million mobile customers in Japan via advanced wireless networks, including a nationwide 3G network and one of the world's first commercial LTE networks. Leveraging its unique capabilities as a mobile operator, DOCOMO is a leading developer of cutting-edge technologies for NFC mobile payments, mobile GPS, mobile TV, intuitive mobile assistance, environmental monitoring, smart grids and much more. Overseas, the company provides technical and operational expertise to eight mobile operators and other partner companies. NTT DOCOMO is listed on the Tokyo (9437) and New York (DCM) stock exchanges. Please visit https://www.nttdocomo.co.jp/english/ for more information.
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