Tatas told to pay NTT DoCoMo $1.2 bn for breach of contract
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Tata Sons Limited has been ordered to pay NTT DoCoMo Inc $1.2 billion to buy DoCoMo's stake in its mobile phone joint venture, the Japanese firm said, citing an international arbitration court ruling.
In 2009, the Japanese telecom group acquired 26.5 per cent stake in Tata Teleservices Limited for around $1.88 billion. In April 2014, it announced plans to exit the venture that struggled to broaden its subscriber base as quickly as its peers.
DoCoMo said it held the right to request that Tata find a buyer for its stake at 50 per cent of the original price or at fair market value, whichever was higher.
But Tata failed to find a buyer, and India's central bank rejected its offer to buy the stake.
In an emailed statement, a Tata Sons representative said the company had received the arbitration decision and was reviewing that. "Tata Sons has always been and continues to be committed to discharge its contractual obligations," he said. — Reuters
