DoCoMo to invest Rs800 crore in Tata Tele to maintain stake

NTT DoCoMo Inc, Japan’s largest mobile-phone operator, will invest 14.6 billion yen ($176 million, or about Rs800 crore) in Tata Teleservices Ltd as part of a rights offering by the Indian partner.
The purchase will allow DoCoMo to maintain its 26% stake in the closely held Indian company, the Tokyo-based phone carrier said in a statement on Thursday.

Part of the payment has already been completed and the remainder will be made in May, the company said.

Tata Teleservices will use the proceeds to help upgrade its third-generation wireless network in India. Tata was among nine operators including Vodafone Group Plc’s Indian unit that spent Rs67,700 crore ($15 billion) on next-generation wireless permits in an auction held by the government last year.

In 2008, DoCoMo bought a 26% stake in Tata Teleservices for $2.7 billion, giving the Japanese mobile operator a foothold in the world’s fastest-growing mobile market.

Tata Tele spent about $1.3 billion in an auction last year to win rights to offer 3G services in nine of India’s 22 telecom zones.
The company had said in November it had set aside $500 million for spending on 3G networks. 

A Tata Tele spokesman declined comment when asked for details of the rights issue.                                          

Temasek Holdings Pte, Singapore’s state-owned investment company, bought 9.9% of the Tata Group unit in March 2006.
Tata units generated combined revenue about $70 billion last year, according to its website. Bloomberg (with inputs from Reuters)