Feuding Minority Shareholder Agrees To Exit India's Tata Group
Mohammad Ali (@ChaudhryMAli88) Published September 23, 2020 | 01:10 AM
Mumbai, Sept 22 (UrduPoint / Pakistan Point News - 23rd Sep, 2020 ) :The largest minority shareholder in India's massive Tata group announced late Tuesday that it would exit the conglomerate, ending a bitter years-long battle following the ouster of former Tata chairman Cyrus Mistry.
The decision by the Shapoorji Pallonji (SP) Group, of which Mistry is the managing director, will likely pave the way for holding company Tata Sons to buy the 18.4 percent stake and boost its control of the salt-to-steel behemoth.
Mistry was axed as chairman of Tata Sons in 2016 as group patriarch Ratan Tata set about eradicating his influence in the 150-year-old conglomerate.
The two companies are mired in a protracted legal fight, with Tata Sons recently securing a court order banning the SP Group from using its stake to raise funds.
"Tata Sons has amplified its institutional efforts to suppress and inflict irreparable harm on the SP Group, in the midst of a global crisis triggered by the COVID Pandemic," the construction firm said in a statement.
"Today, it is with a heavy heart that the Mistry family believes that a separation of interests would best serve all stakeholders," it added.
The move ends a seven-decade-long relationship between the two companies that descended into acrimony following the removal of Mistry from the helm of Tata Sons.
"This is a statement of divorce and basically (the SP group) is telling Tata group that they have the right of first refusal and can buy their shares", Ajit Sharma, a Supreme Court lawyer and expert in company law, told AFP.
Mistry became a Tata Sons director in 2006 and succeeded Ratan Tata, then 75, as chairman in 2012.
But ties quickly deteriorated, with Tata taking interim charge following Mistry's dismissal as the pair engaged in bitter public mudslinging, including accusations of corporate malfeasance.
Mistry also dragged Tata Sons to India's National Company Law Tribunal, claiming that he was unfairly sacked as the world-renowned group descended into turmoil and its global reputation took a hit.
Tata, which was founded under British colonial rule, operates in more than 100 countries. It owns Britain's Tetley Tea and Jaguar Land Rover, and the Anglo-Dutch steel firm Corus.
Related Topics
Recent Stories
Mired in crisis, Boeing reports another loss
Session Awarding Ceremony 2024 held at Cadet College Muzaffarabad
Austrian ski great Hirscher to make comeback under Dutch flag
Pakistan, Japan agrees to convene 'Economic Policy Dialogue'
FM Dar conveys deepest sympathy on torrential rains devastation in UAE
Spain PM Sanchez says weighing resignation after wife's graft probe
Tennis: ATP/WTA Madrid Open results - 1st update
Long-lost Klimt portrait auctioned off for 30 mn euros
Osaka seals first win on clay since 2022 in Madrid
Earthquake jolts Karachi
Sindh minister orders operation after attack on police in Ghotki
TikTok to fight US ban law in courts
More Stories From Miscellaneous
-
PDMA predicts gusty wind, rain with thunder, hails
2 days ago -
Iranian president Raisi given guard of honour at PM House
3 days ago -
Intellectuals, writers accolades Naseer Mirza on his literary contribution
3 days ago -
Bahawalpur Adabi Sangat hosts memorable mushaira
4 days ago -
Cattle farming vital to alleviate poverty in rural areas
4 days ago -
Pakistan: A land of tourism, archeological wonders
4 days ago
-
Transforming education sector: from job hunters to job creators
6 days ago -
Amjad Bobby remembered on 19th death anniversary for timeless contributions to music
10 days ago -
Legendary actor Nadeem’s 26 films released on Eid-ul-Fitr days in 50 years
11 days ago -
Besant Hall Cultural Centre to celebrate evening with Sanam Marvi on 26 April
11 days ago -
Radio Bahawalpur presents program “Eidi Shidi”
14 days ago -
Radio Bahawalpur to broadcast Eid programs
16 days ago