Noel Tata, Shapoorji discuss share swap for Tata Sons stake sale
The Tata Group is negotiating with the Shapoorji Pallonji (SP) Group to potentially swap shares of listed entities for the SP Group's 18.4% stake in Tata Sons. This move aims to help the SP Group repay debt while resolving a long-standing ownership dispute.
Why it matters
A resolution would provide significant liquidity to the SP Group and simplify the corporate structure of one of India's largest conglomerates.
The Tata Group is in talks with its biggest minority shareholder on proposals to unlock liquidity, including a potential swap of shares of its listed entities, as the Shapoorji Pallonji Group seeks funds to repay costly debt, according to people familiar.Representatives of Noel Tata, the Tata family patriarch, are exploring the possibility where SP Group receives shares of companies such as Tata Power Co. in exchange for some or all of its 18.4% in the privately-held Tata Sons Pvt., the people said, asking not to be identified because the discussions are private.Two other options have also been presented: a direct buyout of the construction giant’s stake by Tata Sons, financed by overseas banks, or a sale to an external investor, preferably a global one, the people added.Any breakthrough on this long-running tussle between the Tatas and the SP Group will prove to be a windfall for investors in the latter’s…
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