India’s largest conglomerate by revenue is in the midst of a legal separation from its partner of 70 years, the Shapoorji Pallonji Group.
Tata Group 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 years-long legal dispute between the two parties triggered by the ouster of Cyrus Mistry as chairman of the parent Tata Sons Pvt. The Mistry family, in a statement, also said it’s time to exit Tata.
Why Are The Mistrys Selling
Tata Sons told the Supreme Court that it’s willing to purchase 18.38% stake owned by the cash-strapped Shapoorji Pallonji Group, which is raising funds to repay debt. The SP Group owns the stake through Cyrus Investment Pvt. and Sterling Investments Corporation Pvt.
Cyrus Investments has pledged 37,122 shares, or its entire 9.18% stake in Tata Sons, according to a filing in…