Tata Communications provides update on final award of arbirtration

Of dispute between Tata Sons and Docomo

Tata Communications announced that Tata Sons has informed the Company that the Arbitral Tribunal appointed by the London Court of International Arbitration to arbitrate upon the disputes between Tata Sons and NTT Docomo Inc. ('Docomo') arising out of exercise of a sale option by Docomo, has issued a final award in the matter, which requires Tata Sons to pay to Docomo, damages of US$ 1,172 million upon tender of shares held by Docomo in Tata Teleservices , together with interest, arbitration costs and legal costs. Tata Sons has been advised that payment of these sums would require prior RBI approval. Tata Sons is currently examining the implications of the award and determining its further course of action in consultation with its lawyers.

In March, 2009, the Company had entered into an agreement with Tata Sons, at the time of sale of a portion of its investments in Tata Teleservices to Docomo. Under this agreement, the Company is required to acquire certain shares of Tata Teleservices in the event the Sale Option is exercised by Docomo. At this stage, it is not possible to determine the exact quantum of liability that would devolve on the Company and its impact on the profit and loss of the Company.

 

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