Home Business Business SP group may accept staggered payments

Business SP group may accept staggered payments

Business

Photo: Bloomberg

2 min read

. Updated: 29 Sep 2020, 06:40 AM IST

Jayshree P. Upadhyay, Deborshi Chaki

Mistry family is expected to share the details of the offer in the Supreme Court, making it a part of the plea for relief it is seeking from the court in a minority shareholder oppression case

The Shapoorji Pallonji (SP) group will offer the Tata group easy terms, including the option to stagger payments, to help India’s largest conglomerate buy out the Mistry family’s ₹1.5 trillion stake in Tata Sons Ltd and end a festering feud between the groups that were once close allies, two people directly aware of the matter said.

The Mistry family is expected to share the details of the offer in the Supreme Court, making it a part of the plea for relief it is seeking from the court in a minority shareholder oppression case, the people said on condition of anonymity. The next hearing of the case is scheduled on 28 October.
“Mistry firms believe they have a strong case on oppression and pledging shares of Tata Sons. Owing to the strong legal position, the firms will include the intention to separate from Tata group as an additional relief in the main oppression of minority shareholders petition,” said one of the two people.
The Mistry family believes that a court-supervised separation will ensure a fair deal to them, said the second person. The two groups are valuing the shares of Tata Sons on four parameters—the value of listed companies, value of unlisted firms, brand value and debt.
“The Mistry family is apprehensive that when it comes to valuing unlisted entities, there could be a difference of opinion and may request the court to appoint an independent valuer,” the second person added. “The legal and management teams of both groups are working on the mechanics, which would become clear in coming weeks.”
By seeking to add ‘separation’ from Tata group as an additional relief, the Mistry firms are making it clear that they are not keen on an out-of-court settlement.
“Court would want to satisfy itself that the parties are serious about the exit and resolution. It would not want to go into a full-fledged hearing and would like to exhaust all options to arrive at an amicable solution. It would find a way for the Mistry family to exit, which will be a win-win for both,” said Ramesh Vaidyanathan, founding partner, Advaya Legal.

Subscribe to Mint Newsletters

* Enter a valid email
* Thank you for subscribing to our newsletter.

Click here to read the Mint ePapermint is now on Telegram. Join mint channel in your Telegram and stay updated

Close

×

Read More

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Most Popular

How can I tell the difference between the flu and COVID-19?

Last Updated : Oct 01, 2020 01:54 PM IST | Source: AP Body aches, sore throat, fever, cough, shortness of breath, fatigue and headaches are symptoms shared by the two. How can I tell the difference between the flu and COVID-19?It’s impossible to tell without a test. Influenza and COVID-19 have such similar symptoms, you…

Cardiac arrest common in sick Covid-19 patients

Photo for representational purpose only. iStock New York, October 1 Cardiac arrest is common in critically ill patients with Covid-19 and is associated with poor survival, particularly among patients aged 80 or older, say researchers. The findings, published in the journal The BMJ, could help guide end-of-life care discussions with critically ill patients with Covid-19…

Beware: Vitamin D deficiency can make you obese and lead to stunted growth

Vitamin D, or the ‘Sunshine Vitamin as it is also known as, is one of the essential nutrients that makes your bones and teeth stronger, wards off infections and diseases and keeps you cheerful. This fat-soluble vitamin can also bring down your risk of cancer, autoimmune diseases, heart disease and diabetes. But unfortunately, as many…

COVID-19 cases decline, deaths increase in Chandigarh as September ends

Naina MishraTribune News ServiceChandigarh, October 1 As September comes to an end, the Union Territory has started to witness a decline in the number of positive COVID-19 cases, and daily tests.  However, COVID deaths have increased with every passing week.  September has recorded 100 COVID-19 deaths whereas August reported only 39 deaths.  At least three…

Recent Comments