ID :
29890
Thu, 11/13/2008 - 01:04
Auther :
Shortlink :
https://oananews.org//node/29890
The shortlink copeid
NTT Docomo to buy 26% stake in India`s Tata Teleservices
TOKYO, Nov. 12 Kyodo - Japan's largest mobile phone carrier NTT Docomo Inc. said Wednesday it has reached an agreement with Tata Teleservices Ltd. (TTSL) to acquire a 26 percent stake in the Indian carrier for 130.7 billion rupees, or about 264 billion yen.
With the investment, NTT Docomo aims to boost its foothold in the world's
fastest-growing wireless market as part of its efforts to offset slowing growth
in Japan.
NTT Docomo will acquire about a 20 percent stake in the mobile phone unit of
Indian conglomerate Tata Group in the form of new shares and purchase the
remaining 6 percent from existing shareholders.
TTSL is India's sixth-largest mobile phone carrier with a market share of about
9 percent.
The Japanese firm also formed a strategic alliance with Tata Sons Ltd., the
owner of the Tata name and the Tata trademark.
Through a joint tender offer with Tata Sons, NTT Docomo said it plans to
acquire up to 20 percent of the outstanding common shares of Tata Teleservices
(Maharashtra) Ltd., another telecommunications unit.
Noting Tata group's ''excellent'' brand value, business experience, and sales
networks, as well as TTSL's great potential for growth, NTT Docomo President
Ryuji Yamada said at a press conference in Tokyo, ''We believe we have found
the best partner in India.''
''The investment in TTSL is one of the most important deals from the
perspective of our global strategy,'' he said.
Under the deal, the Japanese company will have veto power in the unlisted
Indian firm, as stakes exceeding 25 percent give shareholders such rights in
India, he said.
NTT Docomo also plans to send three executives to the board of TTSL as it
intends to ''aggressively'' participate in the Mumbai-based firm's operations
to maximize its corporate value, Yamada said.
Anil Sardana, TTSL's managing director, told the same news conference, ''We
completely welcome'' the deal as it should help the Indian firm to launch the
GSM network next year and develop and introduce high-quality next generation
networks and other value-added services cost-effectively.
Tokyo-based NTT Docomo has been seeking to expand its overseas operations by
forming capital alliances with local mobile phone carriers.
The latest cases of such investment include a $100 million investment to
acquire a 16.5 percent stake in Malaysia's U Mobile Sdn Bhd. and a $350 million
investment to acquire a 30 percent stake in TM International (Bangladesh) Ltd.
Last month, NTT Docomo cut its earnings forecast for the current business year
ending next March due to weaker handset sales in Japan, where about 80 percent
of people already own mobile phones.
As of Sept. 30, the number of subscribers to mobile phones in India totaled
315.31 million, up about 50 percent from a year earlier, according to the
Telecom Regulatory Authority of India.
In contrast, in Japan, the number of subscribers, as of Sept. 30, posted a
modest increase of 5.5 percent to 104.83 million from a year before, according
to the Telecommunications Carriers Association.
==Kyodo
With the investment, NTT Docomo aims to boost its foothold in the world's
fastest-growing wireless market as part of its efforts to offset slowing growth
in Japan.
NTT Docomo will acquire about a 20 percent stake in the mobile phone unit of
Indian conglomerate Tata Group in the form of new shares and purchase the
remaining 6 percent from existing shareholders.
TTSL is India's sixth-largest mobile phone carrier with a market share of about
9 percent.
The Japanese firm also formed a strategic alliance with Tata Sons Ltd., the
owner of the Tata name and the Tata trademark.
Through a joint tender offer with Tata Sons, NTT Docomo said it plans to
acquire up to 20 percent of the outstanding common shares of Tata Teleservices
(Maharashtra) Ltd., another telecommunications unit.
Noting Tata group's ''excellent'' brand value, business experience, and sales
networks, as well as TTSL's great potential for growth, NTT Docomo President
Ryuji Yamada said at a press conference in Tokyo, ''We believe we have found
the best partner in India.''
''The investment in TTSL is one of the most important deals from the
perspective of our global strategy,'' he said.
Under the deal, the Japanese company will have veto power in the unlisted
Indian firm, as stakes exceeding 25 percent give shareholders such rights in
India, he said.
NTT Docomo also plans to send three executives to the board of TTSL as it
intends to ''aggressively'' participate in the Mumbai-based firm's operations
to maximize its corporate value, Yamada said.
Anil Sardana, TTSL's managing director, told the same news conference, ''We
completely welcome'' the deal as it should help the Indian firm to launch the
GSM network next year and develop and introduce high-quality next generation
networks and other value-added services cost-effectively.
Tokyo-based NTT Docomo has been seeking to expand its overseas operations by
forming capital alliances with local mobile phone carriers.
The latest cases of such investment include a $100 million investment to
acquire a 16.5 percent stake in Malaysia's U Mobile Sdn Bhd. and a $350 million
investment to acquire a 30 percent stake in TM International (Bangladesh) Ltd.
Last month, NTT Docomo cut its earnings forecast for the current business year
ending next March due to weaker handset sales in Japan, where about 80 percent
of people already own mobile phones.
As of Sept. 30, the number of subscribers to mobile phones in India totaled
315.31 million, up about 50 percent from a year earlier, according to the
Telecom Regulatory Authority of India.
In contrast, in Japan, the number of subscribers, as of Sept. 30, posted a
modest increase of 5.5 percent to 104.83 million from a year before, according
to the Telecommunications Carriers Association.
==Kyodo
