Noel Tata, Shapoorji discuss share swap for Tata Sons stake sale

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 sources.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 sources said, asking not to be identified as 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 sources 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 debt,…