The Mistry family did not specify what separation from the Tata group would entail. (PROCEEDINGS)
The billionaire Mistry family, the largest minority shareholder in the Tata Group, said it needs to separate its interests after India’s largest conglomerate took steps to block the family’s attempt to borrow money against Tata’s stock.
Tata Sons Pvt. Informed the Supreme Court on Tuesday that it is open to buying the 18% stake owned by the cash-strapped Mistry family’s Shapoorji Pallonji group if the latter needs to raise money to pay off past-due 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 great regret that a separation of interests would better serve all stakeholder groups. “
He did not specify what a separation would entail. A representative for Tata Sons declined to comment.
(This story has not been edited by NDTV staff and is automatically generated from a syndicated feed.)
.
