The Shapoorji Pallonji Group on Thursday declared the decision to end its seven decades-old association with the Tata Group and said that it has submitted a plan to Supreme Court for the same. Cyrus Mistry of The Shapoorji Pallonji Group informed the Supreme Court of having valued their holding in the Tata Group at Rs. 1.75 lakh crore. The SC has been probing into the legal battle between the two groups since its beginning in October 2016.
“Tata Sons is effectively a two-group company, with the Tata Group comprising Tata Trusts, Tata family members and Tata companies holding 81.6% of the equity share capital, and the Mistry family owning the balance 18.37%.” The Shapoorji Pallonji Group quoted from its submission to the SC.
The SP Group confirmed that its value which stands at 18.37% stake of the SP Group in Tata Sons is over Rs.1,75,000 crore and arises from its stake in listed equities, non-listed equities, the brand, cash balances and immovable assets.
In their separation plan, the SP Group said that by doing a pro-rata split of listed assets as their share price value is known and pro-rata share of the brand since brand valuation already done by Tata and published, the rivalry overvaluation can be eliminated. They can run a neutral third-party valuation to determine the status of unlisted assets adjusted for net debt.
Pro-rata share of brand value adjusted for net debt can be settled in cash and/ or in listed securities, the statement read.