As per the official release NTT docomo will be selling its company’s entire stake in Tata Teleservices Limited (TTSL), as soon as the conditions for such exercise are met 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 a fair market price, whichever is higher, in the event that TTSL fails to achieve certain specified performance targets.
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.
So we will now have to wait and watch how things shape up in India with Tata Docomo.
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