Japanese company NTT DoCoMo said on Tuesday that it has got the $1.27 billion (Rs 8,200 crore approximately) that an arbitration court had asked Tata Sons Limited to pay in connection with the termination of a joint venture, Mint reported.
With this, DoCoMo will transfer all shares it holds in the joint venture, Tata Teleservices, to Tata Sons, the company said in a filing on the Tokyo Stock Exchange.
In February, Tata Sons had said it would pay the penalty to NTT DoCoMo as ruled by an arbitration court in London in June 2016.
The joint venture, Tata Teleservices, was announced in 2009. But in 2014, DoCoMo decided to exit the venture. The Tatas could not find a buyer for DoCoMo’s 26.5% stake, and offered to buy it for half of DoCoMo’s $2.2 billion (Rs 14,000 crore approximately) investment. But the Reserve Bank of India barred Tata’s move, arguing that foreign investors could not sell stakes in Indian companies at a pre-determined price.
The Japanese firm had alleged a breach of contract on the grounds that Tata Sons had neither found a buyer nor bought back the Japanese partner’s stake.
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