NTT might boost its stake in TTSL (India)

www.WirelessFederation.com/news: NTT DoCoMo stake in Indian mobile network operator Tata Teleservices (TTSL) could be boosted incase the latter fails to meet certain performance benchmarks. As per the agreement between the two companies, NTT could raise its stake in Tata Teleservices from 26% to 35% by March 2012 by infusing fresh equity.

The stake could further rise up to 51% by March 2015 by subscribing to new shares at fair market value plus a 30% control premium.

However, the above action will be taken only if TTSL fails to reach a minimum operating profit margin of 15% and roll out 20,000 GSM towers by March 2012 besides increasing the number of GSM towers to 26,000 and further hiking its EBIDTA margin to 25% by March 2015.