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Japan's NTT DoCoMo Inc has received the green signal from India's cabinet to acquire 20.25 percent stake in Tata Teleservices (TTSL). The approval of the cabinet will allow DoCoMo to buy 384,241,919 equity shares in Tata Teleservices for Rs 9.45 billion. The alliance of the major telecom companies will enable them to expand the mobile communication operations in the emerging mobile market.
Japan's NTT DoCoMo is the largest mobile operator of the country with a subscriber base of 54 million while TTSL is the sixth largest telecom operator of India. TTSL has 30 million subscribers. Apart from approving the acquisition deal, the cabinet has also given its nod to a proposal by National Aviation Co of India Ltd (NACIL) to set up a joint venture with Singapore Air Terminal Services (SATS).
The joint venture between NACIL and SATS aims to undertake ground handling and cargo handling activities. Both the organisations will hold equal stake in the new entity. All the decisions were taken at a cabinet meeting, presided over by External Affairs Minister Pranab Mukherjee in absence of PM Manmohan Singh. The cabinet has cleared as many as 60 agenda items at a single sitting.
