Japanese operator NTT Docomo has announced it received from the London Court of International Arbitration a binding arbitration award under the arbitration proceeding regarding its stake in Indian operator Tata Teleservices (TTSL). The award orders that Tata Sons pay damages to Docomo in the amount of USD 1.172 billion for Tata Sons' breach of the shareholders agreement, upon Docomo’s tender of its entire stake in TTSL to Tata Sons or its designee.
Under the terms of the shareholders agreement between Docomo, TTSL and Tata Sons, Docomo exercised on 7 July 2014 its right to request that a suitable buyer be found to purchase its TTSL shares for 50 percent of the acquired price, amounting to INR 72.5 billion (approximately USD 1.17 billion), or a fair market value, whichever is higher.
Thereafter, pursuant to the shareholders agreement, Docomo submitted its request for arbitration on 3 January 2015 to ensure that its right be exercised after Tata Sons had failed to fulfill its obligation, despite Docomo’s repeated negotiations with Tata Sons regarding the sale of its entire stake in TTSL, NTT Docomo said.
