Telenor talks to Tata on India link-up - report

Nieuws Mobiel India 5 JUL 2012
Telenor talks to Tata on India link-up - report
Telenor is sounding out Tata Teleservices as a possible new partner for its Indian operator Uninor, sources close to the development told Business Line. The two companies have held an initial round of discussions and will take a final call after the rules for the upcoming auctions are clear, the report said. 

A deal could see Uninor merged with Tata Teleservices or for Telenor to acquire Docomo's stake in Tata Teleservices. Telenor has been looking for a new Indian partner since it fell out with local investor Unitech over investments in Uninor. The company needs an Indian partner in order to meet local limits on foreign shareholders. The paper said Telenor was also looking at partnering Viom, a joint venture between Tata Teleservices and Srei Infrastructure for managing network sites. Sterlite Industries is another possible partner. 

Docomo, which owns 26 percent in Tata Teleservices, can increase or sell its stake in Tata Teleservices under a call option agreed four years ago. Docomo can either take its shareholding up to 49 percent or sell its entire stake back to Tata. According to the paper, Tata Teleservices may have missed the performance targets set in the shareholder agreement, which could force Tata to buy back the stake. The Tata Group owns about 60 percent in the company, while Singapore-based Temasek and C. Sivasankaran hold respectively 7 percent and 6 percent. 

Categories:

Mobiel

Companies:

Telenor,  NTT Docomo,  Tata Teleservices,  Uninor,  Unitech

Countries:

India

Tags:

Shareholders & subsidiaries, Cooperations & alliances, M&A buyouts & divestments

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