New Delhi : Tata Sons has got an approval from the RBI to buy Japanese telecom firm NTT DoCoMo’s stake in their struggling joint venture, Tata Teleservices, for Rs 7,250 crore after the central bank changed its rule.
The Reserve Bank of India (RBI) last month informed the Finance Ministry that it was “inclined to accept” the proposal of Tata to buy DoCoMo’s 26.5 per cent stake at Rs 58 per share, half the rate which the Japanese firm originally paid.
Sources told PTI that the central bank said the “structure of the contract is such that the investor, in any circumstances, if it intends to exit, will receive at least Rs 58.045 or higher per share.”
As per RBI norms, the non-resident investor is not guaranteed any assured exit price at the time of making such investment and shall exit at a fair price computed as above at the time of exit.
Taking into account RBI norms, the structure of contract between Tata Sons and NTT Docomo is not in line with the provisions as the fair value of shares is Rs 23.34 per share.
However, sources said the RBI is of the view that larger issue here is of a fair commitment in the contracts in relation to an investment and a downside protection of an investment, rather than an assured return.
