Cabinet clears NTT DoCoMo's acquisition of Tata Tele stake
24 February 2009
The cabinet committee on economic affairs today approved a proposal by NTT DoCoMo of Japan to acquire 27.31 per cent equity capital of Tata Teleservices for about Rs12,924 crore.
The CCEA also gave its approval to NTT Docomo's proposal to acquire up to 384,241,919 equity shares, representing 20.25 per cent, of Tata Teleservices (Maharashtra) Limited, a government release said.
The approval, which is subject to the conditions recommended by Foreign Investment Promotion Board (FIPB), allows the Japanese company to convert Tata Teleservices (Maharashtra) Limited from an operating company into an operating-cum-holding company.
The approval would result in FDI amounting to Rs949.07 crore in the country, home minister P Chidambaram told reporters after a meeting of the Cabinet Committee on Economic Affairs.
Together, DoCoMo's investment in Tata Tele would top Rs13,873 crore.
The matter was referred to CCEA as the investment by the foreign company was beyond the threshhold limit of Rs600 crore.