NTT DOCOMO expected to exit Tata DOCOMO venture!

  • Thread starter Thread starter Sushubh
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So TATA will have whole control over Telecom company, and can sell to Vodafone smoothly. Though Docomo still had option to maintain its 26% even if TATA had sold their stake to other company.
 
I doubt how cash stripped entity will pay for docomo exit if new acquirer of the whole group is not yet appointed. Docomo entered the entity with roughly 2 billion dollar investment
 
http://economictimes.indiatimes.com/industry/telecom/tata-tele-to-use-docomo-name-for-a-year-after-split/articleshow/35613072.cms

According to the pact, if a buyer can't be found by June end, the Tata Group has to pay the higher of a market-linked price or at least Rs7,250 crore, which is half the investment NTT DoCoMo had made in the JV. With the marginal royalty for using the brand name, the payout by Tata will now be slightly more.
A new brand name and marketing around it will not only delay the customer acquisition target but will also require more investment, which the loss-making company is not in a position...
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So Tatas could use docomo sounding tune for 1 more year.
 
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