New Delhi: The Tata family trusts have reached out to sovereign wealth funds and other long-term investors to buy out the stake in Tata Sons held by Shapoorji Pallonji, the family of ousted Chairman Cyrus Mistry, Bloomberg News reported.
The Tata entities are gauging the interest levels of sovereign wealth funds to purchase the 18% stake held by the Shapoorji Pallonji group, if they agree to sell, said the news agency quoting people with knowledge of the matter. Mistry’s family currently has no plans to sell their stake in Tata Sons, the holding company for the Tata group.
The Tata trusts are working on another plan on how to raise funds if they had to make an offer to purchase Shapoorji Pallonji’s stake themselves. The plan could involve the trusts decreasing their holdings in various operating companies to fund the buyout.
Tata Sons is also examining internal candidates to succeed Mistry. Tata Consultancy Services CEO N. Chandrasekaran and Jaguar Land Rover boss Ralf Speth and Noel Tata are among those being considered, Bloomberg reported.
On Monday, the board of Tata Sons had announced that it had ousted Cyrus Mistry and brought in Ratan Tata as the interim Chairman, a move that took the markets and general public by surprise.