Shapoorji Pallonji Group exit: Have not received any formal proposal on the matter, says Tata Sons1 min read . Updated: 15 Oct 2020, 07:52 PM IST
'In any event, since the matter is sub judice before the Supreme Court, Tata Sons will wait for the court proceedings to resume, which are scheduled for October 28,' Tata Sons says in a statement
Tata Sons on Thursday said that they have not received any formal request or proposal from the Shapoorji Pallonji Group on the matter of the latter's exit announcement.
"In any event, since the matter is sub judice before the Supreme Court, Tata Sons will wait for the court proceedings to resume, which are scheduled for October 28," the company said in a statement.
Tata Son's clarification came after the SP Group on 22 September issued a press statement stating their desire to separate from the Tata Group after the Supreme Court had restrained till October 28 the SP Group and Cyrus Mistry from pledging or transferring their shares in Tata Sons Pvt Ltd (TSPL).
Since Tata Sons did not receive any proposal on this matter, SP Group's statement has resulted in considerable confusion and speculation in the media, the company added in the statement.
Shapoorji Pallonji Group last month stated that it's time to exit from Tata Sons after a relationship that spanned 70 years turned sour in the last few years.
"The Shapoorji Pallonji-Tata relationship spanning over 70 years, was forged on mutual trust, good faith, and friendship," the company said in a statement.
"Today, Shapoorji Pallonji Group stated before the Supreme Court that separation from Tata Group is necessary due to potential impact this continuing litigation could have on livelihoods and the economy," the company said.
“It is with a heavy heart that the Mistry family believes that a separation of interests would best serve all stakeholder groups," said Shapoorji Pallonji Group in a press statement.
This essential means that the SP Group, which holds 18.4% stake in Tata Sons through its two investment firms, is willing to sell their stake and move out of the company.
This statement comes after a protracted legal battle which started in December 2016 after Cyrus Mistry was ousted as Chairman of Tata Sons in October 2016.
SP Group said Tata Sons has been taking "value destructive business decisions" ever since Mistry's sacking.