DoCoMo to grab 26% stake in TTSL for USD2.5 billion?

16 Oct 2008

Following reports last month that Japanese mobile communication group NTT DoCoMo was considering the acquisition of a stake in Indian telco Tata Teleservices (TTSL), more details on the potential deal have been revealed. According to livemint.com, citing sources close to the negotiations, it is rumoured that DoCoMo will pick up a 26% stake in the Indian operator for approximately USD2.5 billion; the deal would value TTSL at USD9.61 billion. Reportedly, the proposed deal would see 20% of the NTT stake issued as fresh capital with the remaining 6% sold by Tata Group companies. It is believed that, if the deal proceeds, TTSL will use any funds raised by the sale to expand its network infrastructure, having previously announced plans to spend INR60 billion (USD1.42 billion) on the roll out of new pan-India GSM network; the operator aims to launch GSM services across India by March 2009.

India, NTT DOCOMO, Tata Teleservices (TTSL, incl. TTML)