Japan's NTT DoCoMo Friday said it will sell its 26.5 percent stake in Tata Teleservices by June 2014.
"Tata Sons Limited, NTT DoCoMo Inc. and Tata Teleservices Limited (TTSL) had entered into a shareholders agreement (SHA) dated March 25, 2009. Following its board meeting held on April 25, 2014, NTT DoCoMo has announced that it plans to exercise its sale option under the SHA as soon as the conditions for such exercise are met," a statement issued by Tata Sons after its board meeting said.
NTT DoCoMo had invested $2.61 billion in Tata Tele in 2009.
"Under the agreement, DoCoMo holds the right to require that its TTSL shares be acquired for 50 percent of the acquisition price, which amounts to Rs.72.5 billion or a fair market price, whichever is higher, in the event that TTSL fails to achieve certain specified performance targets," a release by NTT DoCoMo said.
"In the event that TTSL fails to achieve these performance targets by the end of the fiscal year ended March 31, 2014, DoCoMo plans to exercise the above-mentioned right in or before June 2014. DoCoMo expects to sell its TTSL shares in accordance with the agreement. It is uncertain how the option will be performed, however, and DoCoMo is not able to predict how events will unfold," DoCoMo added.
DoCoMo is the second Japanese company to exit India after pharmaceutical company Daiichi Sankyo Co agreed this month to sell its stake in RanbaxyLaboratories to Sun Pharma.
The statement by Tata Sons further said: "As also stated by NTT DoCoMo, it is not possible to predict how events will unfold; however, Tata Sons is cognizant of its responsibilities, and will act keeping in mind the interests of all stakeholders and in accordance with law."