Japanese telecom major NTT DoCoMo could acquire a controlling stake in Tata Teleservices (TTSL) in which it has a 26% stake, if the latter is unable to meet some performance benchmarks, according to the shareholding agreement between the two, according to ET.
These benchmarks may account for the aggression with which TTSL, which operates GSM services under the brandname Tata DOCOMO, has been increasing its subscriber base and market share, said an industry source. GSM is the dominant technology standard underpinning mobile telephony in India.
The shareholders’ agreement gives DoCoMo the right to increase its stake in TTSL to 35% by March 2012 by infusing fresh equity at what document describes at fair market value, though without any premium to the valuation at that point in time.
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