| MUMBAI:
NTT DOCOMO, INC. (DOCOMO), Tata Teleservices Limited (TTSL) and Tata Sons Limited-the
prime promoter for Tata companies including TTSL-today announced their agreement
on a strategic alliance in India, under which DOCOMO will acquire 26 per cent
of TTSL's stock for approximately Rs 13,070 crore (US $2.7 billion). In
addition, DOCOMO, in accordance with regulations of the Securities and Exchange
Board of India, expects to make an open offer to acquire up to 20% of outstanding
equity shares of Tata Teleservices Maharashtra Limited (TTML), a Tata telecommunication
company, through a joint tender offer along with Tata Sons. As
a result of the capital alliance, the partners expect to expand mobile communication
operations in the fast-growing Indian mobile market, aiming to increase operating
revenue and achieve steady business growth. TTSL
and TTML, both based in Mumbai, are telecommunications units of the Tata business,
India's largest conglomerate in terms of operating revenues. Both companies have
high-quality wireless networks spanning the entire country and also have a large
number of retail stores and customer-service outlets. TTSL & TTML have rapidly
increased their combined share of the fast-growing Indian mobile market. They
are rapidly expanding their subscriber bases, which currently stand at over 30
million combined. Tokyo-based
DOCOMO, the world's leading mobile operator, has played a major role in the evolution
of mobile telecommunications through its development of cutting-edge technologies
and services. The company is a strong market leader used by over 50 per cent of
Japan's mobile phone users. DOCOMO will work closely with TTSL's management and
provide know-how to help the company develop its mobile business. TTSL expects
to leverage DOCOMO's expertise in the development and delivery of value-added
services, where DOCOMO is a firmly established market leader.
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