InvestorQ : What are the next steps you see from the Tatas now that Mistry has made the share swap offer?
Moii Chavate made post

What are the next steps you see from the Tatas now that Mistry has made the share swap offer?

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Tisha Malhotra answered.
4 weeks ago
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One thing is certain that the onus is now on the Tatas to act. There has been no response from the Tatas. While this arrangement saves them the liquidity worries, Tatas don’t want to lose control in individual companies to the Mistry family, so it will be tough.

The battle may have begun in 2016 but it may be coming to its most decisive phase now. It began with the ouster of Cyrus Mistry from the Tata Sons board but the real trigger to the stand-off was when Mistry family was not allowed to pledge shares of Tata Sons. Back then, the Mistry family could not do much as it was a closely held private company.

Giving the Mistry family substantial control of the Tata group companies may not be palable to Ratan Tata. Effectively, there are two options in front of the Tatas. They can pay up Rs.1.80 trillion in cash and buy out the Mistry family stake. Else, they will have to facilitate a share swap for Mistry.

Having committed to buy out Mistry’s stake in Tata Sons, there are only two choices available. It is hardly going to be a n easy decision as both are fairly difficult decisions for the Tata group.

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