Billionaire entrepreneur Richard Branson's Virgin Group will exit a marketing
joint venture in India with Tata Teleservices , with the latter agreeing to buy
out the 50 percent stake that Virgin holds for a undisclosed sum, the Hindu
Businessline reported on Thursday.
While Virgin will exit the marketing joint venture with India's fifth largest
mobile carrier, its branding agreement with Tata will continue, the paper said
citing unnamed sources.
The move would mean Tata will have to continue paying royalty fees to Virgin
for three years for using the Virgin brand name, the report said.
The latest move is a part of Tata Teleservices broader plan to integrate all
its telecom-specific businesses into one, the report said citing the sources.
A Tata Tele spokesman declined to comment when contacted by Reuters, while
Virgin India could not be reached.
Japan's NTT DoCoMo owns 26 percent of Tata Teleservices, and is investing
about 8 billion rupees in its rights issue. Tata Tele also has a listed unit
Tata Teleservices (Maharashtra) Ltd .
AKANKSHA ARORA
PGDM -2 sem
joint venture in India with Tata Teleservices , with the latter agreeing to buy
out the 50 percent stake that Virgin holds for a undisclosed sum, the Hindu
Businessline reported on Thursday.
While Virgin will exit the marketing joint venture with India's fifth largest
mobile carrier, its branding agreement with Tata will continue, the paper said
citing unnamed sources.
The move would mean Tata will have to continue paying royalty fees to Virgin
for three years for using the Virgin brand name, the report said.
The latest move is a part of Tata Teleservices broader plan to integrate all
its telecom-specific businesses into one, the report said citing the sources.
A Tata Tele spokesman declined to comment when contacted by Reuters, while
Virgin India could not be reached.
Japan's NTT DoCoMo owns 26 percent of Tata Teleservices, and is investing
about 8 billion rupees in its rights issue. Tata Tele also has a listed unit
Tata Teleservices (Maharashtra) Ltd .
AKANKSHA ARORA
PGDM -2 sem
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