Tata sons is preparing a contingency plan by setting up a task force to buy 18.4% of the shapoorji Pallonji (SP) Groups stake who values it at Rs.1.78 lakh crore. But tata sons wants to buy at a value. Taskforce top group officials includes Tata sons chairman N Chandrasekaran, Saurabh Agarwal Chief Financial Officer (CFO), Ankur Verma Senior Vice President Chairman’s office, Noel Tata Chairman of Trent and Tata Investment Corporation and the managing director of Tata International and the vice chairman of Titan Company and Bhaskar Bhat Former Managing Director, Titan CO Ltd, sources said. The group consists of finance team and also the top officials.
The supreme court restrained Cyrus Mistry’s SP group from pledging or selling any Tata shares until October 28 on September 22. After this verdict, SP group it wants to be separated from Tata sons. However, as it is not a partnership Tata sons rejected the separation offer. Article 75 gives Tatas the power, through a resolution, to squeeze out the Mistry family by buying out their shareholding at fair market value. “There are no discussions with external investors and noimmediacy to the whole thing. It is up to the courts to decide. We are in no hurry to buy the shares”, an official close to the Tatas said.
“This is not part of any discussion with Tata Sons. It is a relief sought from courts by a minority shareholder being pushed to a corner and therefore seeking fair value. Even in the case of invoking article 75, the minority shareholder would be entitled to the fair market value as set out in article 60”, said a lawyer close to the SP group. Tata sons has a permission to invoke a provision from AoA allowing it to squeeze out shareholders if it was not possible to set aside the pledges. It essentially means that Tata is seeking to buy out the minority shareholder at a price seen fit by them.
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