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Tata Teleservices shares soar as Tata Group offers to buy out Docomo stake

According to reports, Tata Group has offered to buy the entire stake at Rs 23.34 a share, 60 per cent lower than the pre-agreed valuation of Rs 58 a share.

BT Online Bureau   New Delhi     Last Updated: July 20, 2015  | 13:32 IST
Tata Tele shares soar 20% as Tatas offer to buy out Docomo stake
Photo: Reuters

Tata Teleservices shares gained as much as 20 per cent in afternoon trade on Monday on reports that Tata Group has offered to buy out NTT Docomo in the loss-making firm.

The Japanese telecom giant holds a 26.5 per cent stake in Tata Teleservices. According to a Business Standard report, Tata Group has offered to buy the entire stake at Rs 23.34 a share, 60 per cent lower than the pre-agreed valuation of Rs 58 a share.

Docomo had invested in Tata Teleservices in 2008 at a price of Rs 117 a share. Tata Teleservices has been registering losses and its shares have declined since Docomo came on board.

Cheering the reports of the buy out, shares of Tata Teleservices were trading 20 per cent higher at Rs 8.46 apiece at 12.26 pm against Friday's close of Rs 7.05.
 
Tata Group's revised offer has come after the Finance Ministry refused its proposal to buy out Docomo's share at Rs 58, determined on the basis of a fair market valuation as on June 30, 2014.
 
Docomo has now moved the London Court of Arbitration to get the price of Rs 58 a share, amounting to Rs 7,200 crore for its entire stake in Tata Teleservices.

 



 

 

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