Tata, SP Group explore share swap to unlock Tata Sons stake amid valuation divide
The Shapoorji Pallonji Group and Tata Sons are in negotiations to monetize a 7% stake in the Tata holding company to help the SP Group manage its debt. The parties are currently struggling to agree on the valuation and structure of a potential share-swap deal.
Why it matters
This transaction involves two of India's largest business conglomerates and could have significant implications for the corporate structure and debt management of the SP Group.
Mumbai: Shapoorji Pallonji Group and Tata Sons held fresh discussions to explore the monetisation of an estimated 7% in the Tata group holding company, according to people familiar with the matter.SP Group has a 18.37% stake in Tata Sons and wants to sell some of that to repay part of its estimated debt of ₹60,000 crore.The two sides remain divided over the structure and valuation of a potential transaction, said the people cited. Among the proposals on the table was a share-swap arrangement, under which SP Group would receive a basket of listed Tata group company shares in exchange for part of its Tata Sons stake, they said.Also Read: Gautam Adani denies any deal linked to dismissal of US criminal case in sworn affidavitWhile recent Reserve Bank of India directives on upper layer non-banking finance companies (NBFCs) have fuelled speculation that a listing of Tata Sons could become a possibility…
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