Tata Sons doesn't want a new stakeholder in place of Shapoorji Pallonji (SP) family, said two sources familiar with the developments. The holding company of Tatas will consider long term debt financing option for buying their stake, if the legal dispute closes with an order for share transaction, they further added.
"The holding company's view in the matter will be aligned to the basic principles and values for which Ratan Tata took up the fight with Mistrys," said one of the sources, who is a legal expert.
"After enough delibrations, the lawyers informed the Supreme Court about the intention to purchase SP group's stake. But they are yet to inform the court that they are willing to sell. Fund raising will be a matter only after the court verdict," said one of the sources.
Both of them denied the report that the holding company has reached out to several investors, including sovereign wealth funds, to raise funds to buy out the Mistry family's stake in Tata Sons.
The stake is estimated to be valued at Rs 1.3 lakh crore. However, the SP Group has claimed that their 18.37 per cent is valued Rs 1.75 lakh crore, sources told Business Today earlier. But sources in Tatas valued the stake at Rs 90,000 crore to Rs 1 lakh crore in the post COVID scenario.
Lawyer Harish Salve, who represents Tata Sons, had informed the Supreme Court a week back that the 150-year-old conglomerate is willing to buy the 18.37 per cent stake owned by the SP Group. It is for the second time that Tatas have evinced interest in acquiring Mistrys' stake. Mistrys have agreed to sell.
Earlier, in 2018, the counsel for Tata Trusts had told National Company Law Tribunal (NCLT) that it would be in the best interests of Tata Sons to buy out the Shapoorji Pallonji Group's stake in the holding firm.
Tata Sons is the holding company for around 100 companies and is valued at around $100 billion by the experts. However, in the current global crisis, the group companies struggling to stabilise the businesses. Several Tata companies are reeling under heavy debts, including Tata Steel, Tata Motors and Tata Power.
Mistrys are the largest individual shareholders in the holding company of Tata Group. The charitable trusts of the Tata family control 66 per cent stake.