The shares are held by Sterling Investments Corporation Private Ltd. (“SICPL”) and Cyrus Investments Private Ltd. (“CIPL”). This was in the context of meetings and discussions held earlier between Mr. Noel N Tata, Mr. N. Chandrasekaran and Mr. Shapoor Mistry, Tata Trusts said in a statement.
SP Group holds about 18.37 per cent stake in Tata Sons.
The proposal envisages a sale of such number of Tata Sons shares held by SICPL and CIPL as would, at a minimum valuation, as determined in accordance with Rule 11UA of the Income Tax Rules 1962, yield a gross consideration of Rs. 25,000 crore, the statement said.
For SP Group, the acceptable structure is share buyout to be carried out in two tranches over an eighteen-month period and Tata Sons would initiate a selective capital reduction process through the National Company Law Tribunal.
Valuation of Tata Shares would be done as per Income-tax fair value, the statement said.
Noel N. Tata suggested that various avenues could be used for the purpose of raising the funds required for this purpose, including from internal cash flows, sale of listed shares, bringing in an investor into some of the newer businesses and listing, upon an offer for sale, of some of the businesses.
He requested the board to take the necessary steps for initiating the NCLT process and authorise the operating team of Tata Sons and the Tata Trusts to continue discussions with the SP Group, and the bankers, and report to the Board.
This is in continuation and reaffirmation of the Tata Trusts’ desire to offer a fair and equitable solution to the SP Group in respect of their holdings in Tata Sons.

