As the feud between Tata Group and Shapoorji Pallonji Group continues, the latter has said that it is all set to part ways. In a statement on September 22, SP Group said that it "believes that a separation of interests would best serve all stakeholder groups".
"The past oppressive actions, and the latest vindictive move by Tata Sons that impact the livelihoods of the wider SP Group community leads to the inexplicable conclusion that the mutual co-existence of both groups at Tata Sons would be infeasible. The SP-Tata relationship spanning over 70 years, was forged on mutual trust, good faith, and friendship. Today, it is with a heavy heart that the Mistry family believes that a separation of interests would best serve all stakeholder groups," the statement read.
According to reports, Tata Group had offered to buy SP Group's share in Tata Sons (TSPL) to help them raise money and repay debt. Tata Group is believed to have informed their intention to the apex court on Tuesday, after the SC restricted SP Group and Cyrus Mistry from pledging or transferring their shares in Tata Sons until October 28.
A bench comprising Chief Justice SA Bobde and Justices AS Bopanna and V Ramasubramanian directed Tata Sons and SP Group not to take any further action on the shares, which have already been pledged until October 28, the next date of hearing.
SP group holds an 18.37 percent stake in Tata Sons through its two investment firms - Cyrus Investments and Sterling Investment. Tata Group owns the rest of the stake through its trust and group companies.
SP group was planning to raise Rs 11,000 crore from various funds and had signed a deal with a Canadian investor for Rs 3,750 crore. The group had pledged Tata's shares to borrow more funds to pay their maturing debt.
This move was opposed by Tata group, who had moved the apex court on September 5 to challenge and invalidate any direct or indirect pledging of their shares.