NEW DELHI: The billionaire mistry family, the largest minority shareholder of the Tata Group, said he needs to separate his interests after India’s largest conglomerate took steps to block the family’s attempt to borrow money against Tata’s stock.
Tata Sons Pvt reported Tuesday that the Supreme Court said it is open to buying the 18% stake owned by the Mistry family, which has liquidity problems. Shapoorji Pallonji Group if the latter needed to raise money to pay the overdue debt.
Instead, the SP Group wanted to borrow funds using the shares as collateral, a move that Tata considers potentially risky because the securities may end up falling into the hands of hostile investors.
Tata Sons Pvt reported Tuesday that the Supreme Court said it is open to buying the 18% stake owned by the Mistry family, which has liquidity problems. Shapoorji Pallonji Group if the latter needed to raise money to pay the overdue debt.
Instead, the SP Group wanted to borrow funds using the shares as collateral, a move that Tata considers potentially risky because the securities may end up falling into the hands of hostile investors.
“The action of Tata Sons to block this crucial fundraiser, without paying attention to the collateral consequences, is the latest demonstration of its vindictive mentality,” the SP Group said in a statement Tuesday night.
“The SP-Tata relationship, which spans more than 70 years, was forged on the basis of mutual trust, good faith and friendship. Today, the Mistry family believes with regret that a separation of interests would better serve all stakeholders, ”the statement added.
He did not specify what a separation would entail. A representative for Tata Sons declined to comment.
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