Tata Sons will take permission from the Competition Commission, Income Tax Department to pay for Docomo:
Tata Sons will take permission from the Indian Competitiveness Commission (CCI) and Income Tax Department to pay NT $1.18 billion to NTT DoCoMo. NTT Docomo was once a partner in Tata’s telecommunications venture, but now he has left the venture.
Tata Power said in the information sent to the stock exchanges, “As per the Delhi High Court order, Tata Sons will get permission from CCI and tax authorities to give this amount to Docomo.
According to agreed terms, this amount will be given to NTT DoCoMo in exchange for the shares transferred to Tata Sons. “The Delhi High Court had rejected the Reserve Bank’s objection to the Tata-Docomo case last week. This cleared way for the Japanese telecom company to pay more than $1.1 billion.
There was a legal battle with Docomo for alleged joint violation of the terms of the contract in relation to Tata Tele services, the Indian joint venture of Tata Group.
Docomo, in a joint venture under the shareholding agreement, will be able to find a buyer for the Japanese company’s stake in five years, which will buy Docomo’s stake at least 50 percent of the acquisition price. According to this, it becomes Rs 58.45 per share.
Another option was that Tata would buy Docomo’s stock at a fair price which sits at 23.44 per share. However, Docomo did not accept it and decided to go for arbitration.