Shapoorji Pallonji Group has invested in all Tata companies and is seeking a split

The Shapoorji Pallonji Group (SP) is seeking a proportional split of all Tata Sons assets based on a 18.4% stake in the Tata conglomerate holding company, the group said in a settlement application in the Supreme Court.

The SP Group seeks direct shares in all Tata Group listed companies, including a 13.22% stake in Tata Consultancy Services, the pinnacle of conglomerates. It claims a proportional distribution of the Tata brand and seeks a neutral third-party valuation of unlisted assets adjusted for net liabilities.

SP Group, one of India’s largest construction companies, holds an 18% stake in Tata Sons, but since 2016, when Cyrus Mistry, the descendant of the family that manages SP Group, was dismissed, the two groups have been I’m involved in a court battle. As Chairman of Tatason’s.

The SP Group said in a statement that as a non-cash settlement, it would be necessary to acquire proportional shares of Tata Group’s listed companies, for which Tata Sons currently owns shares. “For example, 72% of Tata Consultancy Services Ltd. (TCS) is owned by Tata Sons, and 18.37% ownership of SP Group is equivalent to 13.22% stake in TCS (current market capitalization). (Equivalent to 1,35,000 rupees). TCS) “.

Proportional distribution of brand value adjusted for net liabilities (that is, liabilities minus cash and cash equivalents) can be settled in cash and / or listed securities. In the case of unlisted companies, he said, both sides can make a quick assessment with a selected expert. The Tata brand was valued at $ 20 billion in the previous valuation.

The SP Group states that a “quick implementation” settlement is a mutually beneficial transaction as Tata Sons retains control, is a promoter of group companies and enjoys a shareholding premium. I did. “If Tata Sands does not want to dilute its stake in a particular company, the SP Group can accept its value in either cash or TCS shares,” he said. In addition to this settlement, Tatason’s will not increase its debt to buy the shares of the Mystery Group, he said.

The same scheme can be applied to Tata Group companies that hold shares in Tatason’s, offering liquid assets in place of shares and increasing net worth of more than Rs 100,000. According to the statement, the substantial ownership of Tatatrust will be close to 100 percent from the current 66 percent after the Mystry family left.

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Shapoorji Pallonji Group has invested in all Tata companies and is seeking a split

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