Shapoorji Pallonji Group Agrees To Exit Tata Sons, Calls For Separation, Says Move In The Best Interest Of All Stakeholders

Shapoorji Pallonji (SP) Group said on September 22 it is time to separate from Tata Group. SP group added it was crucial that an early resolution is reached to arrive at a fair and equitable solution, reflecting the value of the underlying tangible and intangible assets. It also blamed Tata Sons and said it has amplified its institutional efforts to suppress and inflict irreparable harm on the SP group, in the midst of a global crisis triggered by the coronavirus pandemic, when the Mistry family were in the midst of raising funds against the security of their personal assets to meet the crisis. Tata Group said it is open to buying out the stake held by its largest minority shareholder -- the billionaire Mistry family -- as part of a proposal to help end a year-long legal dispute between the two parties. A lawyer representing Tata Sons Pvt. informed the Supreme Court on September 22 of the offer to purchase the 18 per cent stake owned by the cash-starved Shapoorji Pallonji group if the latter needed to raise money for paying maturing debt. The SP Group wanted to borrow funds using the shares as collateral, a move Tata Group considers as potentially risky because the securities may end up falling in the hands of unfriendly investors. SC on September 22 had barred the Mistry Group from pledging or selling any Tata shares until October 28. Cyrus Mistry has been embroiled in a bitter legal battle with Tata Group since he was overthrown as chairman of Tata Sons in a 2016 boardroom coup; a position he held since 2012.

(The above story first appeared on LatestLY on Sep 23, 2020 12:57 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).