NTT DoCoMo may consider increasing its 26% stake in Tata Teleservices, which it bought in 2008 for US$2.7bn.
According to the terms of the 2008 contract, NTT has the right to up its stake to 35% by March 2012, and further to 51% by March 2015 if Tata…
NTT DoCoMo may consider increasing its 26% stake in Tata Teleservices, which it bought in 2008 for US$2.7bn.
According to the terms of the 2008 contract, NTT has the right to up its stake to 35% by March 2012, and further to 51% by March 2015 if Tata Teleservices fails to meet pre-specified performance benchmarks.
The stake increases would be via a subscription of new shares at fair market value plus a 30% control premium.
The performance targets are to reach a minimum operating profit margin of 15% and rolling out 20,000 towers by March 2012, to increase the number of GSM towers to 26,000 by March 2015 and further up its EBIDTA margin to 25%.
