Mumbai, Nov 12: NTT DOCOMO, global mobile telecom major, INC, Tata Teleservices Limited (TTSL) and Tata Sons Limited- the prime promoter for Tata companies including TTSL- on Wednesday, Nov 12 announced their agreement on a strategic alliance in India, under which DOCOMO will acquire 26 per cent of TTSL's stock for approximately Rs 13,070 crore ($2.7 billion).
In addition, DOCOMO, in accordance with regulations of the Securities and Exchange Board of India (SEBI), expects to make an open offer to acquire up to 20 per cent of outstanding equity shares of Tata Teleservices Maharashtra Limited (TTML), a Tata telecommunication company, through a joint tender offer along with Tata Sons, according to a joint release issued here.
As a result of the capital alliance, the partners expect to expand mobile communication operations in the fast-growing Indian mobile market, aiming to increase operating revenue and achieve steady business growth, the release added.
TTSL and TTML, both based in Mumbai, are telecommunications units of the Tata business, India's largest conglomerate in terms of operating revenues. Both companies have high-quality wireless networks spanning the entire country and also have a large number of retail stores and customer-service outlets. TTSL&TTML have rapidly increased their combined share of the fast-growing Indian mobile market. They are rapidly expanding their subscriber bases, which currently stand at over 30 million combined.
Tokyo-based DOCOMO, the world's leading mobile operator, has played a major role in the evolution of mobile telecommunications through its development of cutting-edge technologies and services. The company is a strong market leader used by over 50 per cent of Japan's mobile phone users. DOCOMO will work closely with TTSL's management and provide know-how to help the company develop its mobile business. TTSL expects to leverage DOCOMO's expertise in the development and delivery of value-added services, where DOCOMO is a firmly established market leader.