Tata Sons told to pay $1.17 bn to NTT Docomo
Tata Sons is currently examining the implications of the award and determining its further course of action in consultation with its lawyers.
Pursuant to Regulation 30 read with Schedule Ill to the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, this is to notify you that we have been informed by Tata Sons Limited that the Arbitral Tribunal
appointed by the LCIA, London to arbitrate upon the disputes between Tata Sons Limited and NTT Docomo Inc. ('Docomo') arising out of exercise of a sale option by Docomo, has issued a final award in the matter, which requires Tata Sons to pay to Docomo, damages of
US$ 1, 172 million upon tender of shares held by Docomo in Tata Teleservices Limited,together with interest, arbitration costs and legal costs.
Tata Sons has been advised that payment of these sums would require prior RBI approval. Tata Sons is currently examining the implications of the award and determining its further course of action in consultation with its lawyers.
In March, 2009, the Company had entered into an agreement with Tata Sons, at the time of sale of a portion of its investments in Tata Teleservices Limited to Docomo.
Under this agreement, the Company is obligated to acquire certain shares of TTSL in the event the Sale Option is exercised by Decomo. At this stage, it is not possible to determine the exact quantum of liability that would devolve on the Company and its impact on the profit and loss
of the Company. The Company would intimate to the stock exchange the relevant details as and when the liability is crystallized.