NTT DoCoMo acquires 26% stake in Tata Tele Services

NTT DoCoMo, as was speculated earlier has acquired 26% stake in Tata Teleservices for $2.7Bn (i.e. Rs 12,770 crore)

The deal values Tata Tele @ $10.4 Bn , i.e. Rs 50,270 crore – DoCoMo will buy 6% from Tata Sons and other group companies and the remaining 20% will be new shares issued by Tata Teleservices

Deal numbers that you should know

• Tata Tele is valued more than RCOM’s market cap.
• Tata Tele has 25 million subscribers in 20 circles.
• Per Subscriber price = Rs. 19,334
• Per subscriber market cap for Airtel is Rs 14,977, Reliance : Rs. 7,420.
• Vodafone paid Rs 32,336 per subscriber to acquire 67% stake in Hutch.
• Telekom Malaysia paid Rs 23,152 per subscriber for 15 per cent stake in Idea Cellular.

BS has nicely summarized the deals in Indian telecom space:

Earlier, Telenor acquired 60% stake in Unitech for $1.07bn and Emirates Telecommunications Corporation (Etisalat) bought 45% stake of Swan Telecom Private Ltd.