Tata Sons, which holds majority stake in its subsidiary Tata Teleservices Maharashtra Limited (TTML), approved an investment of Rs 3,000 crore into the company through redeemable preference shares, according to a BSE notification. Tata added in the notification that it did not approve the investment through the compulsory convertible preference route, as reported by Business Standard. The board had met on June 25th to discuss terms of investment into TTML, and it is subjected to all shareholders and regulatory approval. Mounting losses and troubles with NTT DOCOMO stake The approval for investment comes at a time when Tata Teleservices posted losses of Rs 79.64 crore loss for the quarter ended December 31, 2015 (Q3 FY16), which is the telco’s 22nd straight loss making quarter. Following which, the company was ordered to pay $1.17 billion in damages to Japan based telco NTT DOCOMO by a London court, as indicated by Livemint. Tata Sons and NTT DOCOMO together operates Tata Docomo in India, which is a joint venture between the two entities. NTT DOCOMO had acquired a 26% stake in TTML for around $2.7 billion in 2008. The report added that Tata had failed to find a seller for NTT DOCOMO’s 26% stake in the loss-making company Tata Teleservices when NTT had expressed interest to sell the entire stake in 2014. The terms of agreement between both companies provides an option for the acquirer (NTT DOCOMO) to request a suitable buyer for at least 50% of the acquired price. Other updates from Tata Group Tata…
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
News
Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...
Advert
135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...
News
By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...
News
Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...