Japanese telecoms giant NTT DoCoMo has acquired 26% of Tata Teleservices (TTSL), after reaching an agreement with Tata Sons, the prime promoter of Tata companies, including TTSL. The deal is worth US$2.7 billion and has been named as one of India Business Law Journal’s 2008 Deals of the Year. Skadden Arps Slate Meagher & Flom represented NTT DoCoMo while TTSL was represented by AZB & Partners.
TTSL is based in Mumbai and has wireless networks across most of India as well as a large number of retail stores and customer-service outlets. The deal will greatly increase DoCoMo’s access to India’s telecoms sector, including through TTSL’s large share of the rapidly expanding Indian mobile market.
DoCoMo is also expected to make an open offer to acquire up to 20% of the outstanding common shares of Tata Teleservices Maharashtra (TTML), a Tata telecommunications company, through a joint tender offer with Tata Sons.