In turn Docomo will be transferring all its shares in Tata Teleservices Limited to Tata Sons.
New Delhi: Tata Sons on Friday said that the Delhi High Court order will allow the group to remit the $1.18 billion deposited with the Registrar of Court to the Japanese firm Docomo. In turn Docomo will be transferring all its shares in Tata Teleservices Limited to Tata Sons.
“The court allowed both the enforcement of the award and implementation of the consent terms between the two entities. Tata Sons and NTT Docomo are taking further steps in terms of the order,” said Tata Sons.
The court noted that the shareholders’ agreement and the Arbitration Award were not opposed to any provision of Indian law or public policy, said the company.
“The consent terms too were not contrary to any Indian law, the order stated,” the firm said.
The court held that Tata Sons honouring its commitment “will have a bearing on its goodwill and reputation in the international arena”, it said.
Tata Sons had announced in February this year that it had reached an agreement with NTT Docomo
RBI had blocked Tata’s offer, saying a rule change in 2016 prevented foreign investors from selling stakes in Indian firms at a pre-determined price.
Docomo entered India in 2009 with an investment of nearly $2.2 billion in Tata group’s Tata Teleservices for a 26.5 percent stake in the joint venture but competition and a low subscriber base forced Docomo to rethink its strategy.