DoCoMo, Tatas delay open offer for Tata Tele

NTT DoCoMo, Japan’s largest mobile-phone operator, and Tata Sons have postponed their joint open offer for up to 20 per cent of Tata Teleservices (Maharashtra) Ltd as it is yet to be cleared by the market regulator.

The offer, which was slated to open on January 8, has been delayed as the firms are still waiting for a response from the Securities and Exchange Board of India.

In a statement to the stock exchanges, Lazard India, which is managing the deal, said the revised schedule for the open offer will be announced after getting the regulator's approval.

Last month, NTT DoCoMo said it would pay $2.7 billion for a 26 per cent stake in the unlisted Tata Teleservices, giving the Japanese company a foothold in the world's fastest growing major mobile market.

DoCoMo is making an open joint tender offer with Tata Sons, the holding firm of the group, to buy up to 20 per cent in the listed unit of Tata Tele, as required by Indian law. The offer price has been fixed at Rs 24.70 a share.

Unlisted Tata Teleservices is majority owned by the Tata Group, which analysts say is participating in the open offer so as not to completely dilute its holding in the telecom arm.

Nikhil Saraf, an India-based spokesman for Lazard, told Bloomberg that the regulator will probably approve the plan next week and propose a schedule. The approval was initially expected by December 20.

Shares in Tata Teleservices (Maharashtra) ended down 1.2 per cent at Rs 20.45.

When contacted, a Sebi spokesperson said it is the policy of the regulator not to comment on individual cases. However, he said delays in approval can be on account of clarifications awaited either from the company or from merchant bankers. According to the Sebi website, DoCoMo’s case is under process.

As on December 19, the regulator’s approval has been sought in six cases in the last couple of months. Sebi is studying replies from merchant bankers in three cases and another three are “under processing”.

The case of acquisition of shares of Indo Tech Transformers by Prolec-GE International is under Sebi examination. The regulator is awaiting replies from merchant in the cases of acquisition of shares of Fem Care Pharma by Dabur and Vanasthali Textiles by Millennium Holdings. The cases of Tata Tele, Avery India and Cambridge Solutions are being processed.