Telenor mulling over merger of Indian unit with Tata Teleservices

Norwegian telecommunication company, Telenor is reportedly exploring stake acquisition choices in Tata Teleservices restricted (TTSL) and has initiated talks with the corporate for an equivalent. Incidentally, Telenor’s world President and corporate executive Jon Fredrik Baksaas is scheduled to be in urban center on Th. he's additionally expected to carry a group discussion that day.

Japan’s NTT DoCoMo owns a twenty six per cent stake in Tata Teleservices that it nonheritable from the TATA cluster in 2008. it had been probably to stay a shareowner within the incorporate entity, as per sources. during this regard, it's examining the choice of getting NTT DOCOMO’s stake in TTSL subject to NTT DOCOMO’s approval and so merging it with Uninor.

Any deal would rely on new takeover rules presently being thought-about by the telecommunication administrative body of India (TRAI) In 2014, Japan-based operator set to exit its Indian operations through the sale of its stake in TTSL by physical exertion its place choice, that was a part of the stake merger agreement signed in 2008. NTT DOCOMO set to drag out of the venture as TTSL was unable to satisfy a number of the performance targets set before it as per the agreement. As per the terms of the agreement, TTSL is needed to shop for back NTT DOCOMO’s stake at fifty per cent of the dealings price of the stake nonheritable in 2008 or the prevailing market value, whichever is larger.

Under associate agreement, Telenor may need the choice of shopping for out the japanese company in an exceedingly few years, as per sources.

Earlier in 2012, Telenor had thought-about partnering with TTSL for continued its telecommunication operations in India when its fallout with Unitech, following the cancellation of licences of their venture, Uninor, in Feb 2012 by the Supreme Court.