Mumbai, October 29
The Shapoorji Pallonji Group on Thursday said it has submitted a plan to the Supreme Court to end its seven decades-old association with the Tata Group.
The Mistrys have valued their holding in the Tatas at Rs 1.75 lakh crore, it informed the apex court, which is hearing the long-drawn legal battle between the two groups that began after the Tatas in a Boardroom coup on October 28, 2016 sacked Cyrus Mistry as the chairman.
“Tata Sons is effectively a two-group company, with the Tata Group comprising Tata Trusts, Tata family members and Tata companies holding 81.6% of the equity share capital, and the Mistry family owning the balance 18.37%,” the Shapoorji Pallonji Group said, quoting from its submission to the apex court.
The group has submitted a plan for separation from Tatas to the Supreme Court.
Tata Sons is the core investment company and is the holding company for the Tata Group and its value arises from its stake in listed equities, non-listed equities, the brand, cash balances and immovable assets. The value of 18.37% stake of the SP Group in Tata Sons is over Rs 1,75,000 crore, it said.
In their scheme of separation, the SP Group said disputes over valuation can be eliminated by doing a pro-rata split of listed assets (share price value is known) and pro-rata share of the brand (brand valuation already done by Tata and published). A neutral third-party valuation can be done for the unlisted assets adjusted for net debt.
As a non-cash settlement, the SP Group sought pro-rata shares in listed Tata entities where Tata Sons currently owns stake. Pro-rata share of brand value adjusted for net debt can be settled in cash and/or in listed securities, the statement said. — PTI