NTT DOCOMO Inc. (DOCOMO), Tata Teleservices Ltd (TTSL) and Tata Sons Limited, the prime promoter for Tata companies including TTSL, today announced their agreement on a strategic alliance in India, under which DOCOMO will acquire 26 percent of TTSL's common shares for approximately 130.7 billion Indian rupees ($2.7 billion).
In addition, DOCOMO, in accordance with regulations of the Securities and Exchange Board of India, expects to make an open offer to acquire up to 20 percent of the outstanding common shares of Tata Teleservices (Maharashtra) Ltd (TTML), a Tata telecommunications company, through a joint tender offer with Tata Sons.
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.
TTSL, based in Mumbai, is a telecommunications business unit in Tata, India's largest conglomerate based on operating revenues (see attachment). The company covers nearly all of India with high-quality wireless networks and a large number of retail stores and customer-service outlets. TTSL has sharply increased its share of the fast-growing Indian mobile market, and it is rapidly expanding its subscriber base, which currently exceeds 30 million (including TTML subscribers).
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 mobile technologies and services. The company is a strong market leader used by more than 50 percent of Japan's mobile phone customers. News from CIOL
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