Tata Teleservices (TTSL)'s subsidiary, Tata Sons was ordered to pay US$1.17 billion to NTT DoCoMo for breaching a shareholder agreement.
NTT DoCoMo said in a statement Friday that it received an arbitration award from the London Court of International Arbitration after it filed a request last year saying Tata Sons failed to fulfill its obligation to find a buyer for DoCoMo’s stake in Tata Teleservices. NTT DoCoMo had sought arbitration after the Reserve Bank of India (RBI) opposed its move to exercise its option to sell back its stake to Tata Group at half its original investment, as agreed in their joint venture contract.
The Japanese Operator acquired a 26.5 percent stake in Tata Teleservices for around 127.4 billion rupees in 2009. In April 2014, it announced plans to exit the venture, which struggled to grow subscribers as quickly as its peers.
