Promoter stakes in several K.K. Modi group companies, including listed cigarette maker Godfrey Phillips India Ltd, are up for sale, the late industrialist’s son Lalit Modi tweeted on Monday.
Lalit Modi and his family own 47.09% stake in Marlboro maker Godfrey Phillips, while Philip Morris Global Brands, the owner of the Marlboro brand, owns 25.1%.
“Just to set the record straight. Yes all Assets of the #kkmodi group are going on sale. I mean all. The other 3 trustees wanted to continue running the business but I felt post my father passing away - the value will deplete. I voted for sale," Lalit Modi said in a tweet. K.K. Modi died in November.
On Monday, The Hindu Business Line reported that key promoter entities, led by the K.K. Modi Family Trust, have reached out to global investment bankers for the mandate to sell their stake.
Lalit Modi, the flamboyant founder of the popular cricket tournament Indian Premier League, is in London since 2010 after facing various charges of financial irregularities with regard to his running of the cricket league.
In a later tweet, Modi clarified that certain businesses are not part of the sale plan, and will continue to be run by his family members Samir Modi, Bina Modi and Charu Modi. “All companies/land/investments in any other companies - and assets listed on http://modi.com will be on sale except - #colorbar /ego/Beacon Travels and education businesses. Which will be retained to be run by Samir/ Bina/Charu. Rest on sale. Including #indofil," he tweeted.
K.K. Modi group companies that are likely to be sold include Modicare Ltd, a direct selling company; Modi Healthcare Placement, which provides hiring services; and Twenty Four Seven Convenience Stores.
“The investment banker will have mandate to sell to highest bidder. The banker will be assisted by the group CEO #rkmalhotra who will appraise the trustees headed by #Binamodi with Charu/Samir and me. Process 4 (for) sale laid strictly in the trust guidelines and no deviation allowed," Modi tweeted.
The tweets indicated a possible rift in the family post the death of K.K. Modi, with Lalit Modi stating that he did not believe his mother, Bina Modi, was fit to run the businesses.
“I did not approve #Binamodi to run the #empire as she is not qualified to run such large corporation and will dilute our value. Thus the sale of all companies, properties etc, has been approved at the first trust meeting on 30/11/2019. The full sale must be completed by 29/11/2020," said Lalit Modi.
Emails sent to Modi group did not elicit a response.
Bina Modi was appointed chairperson of Modi Enterprises in November. She was also appointed president and managing director of Godfrey Phillips India on 14 November.