The resolution proposed by Tata Sons, if passed, would restrict free transfer of shares and lead to “greater challenges in disinvesting its shareholding” in Tata Sons, said a letter by the firm addressed to the directors of Tata Steel Ltd. BloombergQuint has accessed the letter. The Mistry-firm has also sent the same letter to directors of Tata Motors Ltd., Tata Power Ltd., Tata Chemicals Ltd., Tata Global Beverages Ltd. and Indian Hotels Company Ltd.
Tata Sons, parent of the $103 billion salt-to-software conglomerate, plans to change its legal status from a public to a private company. The move will restrict the Mistry family’s ability to sell its 18.4 percent stake to external investors. Tata’s proposal came after a months-long legal wrangle over the removal of Cyrus Mistry from the helm of the holding company.
AS carried in BQ on 20/9/2017