In June 2016, Nitin Nohria, a Tata Trusts’ nominee director on the Tata Sons board was in discussion with Vodafone Plc to sell Tata Teleservices Ltd., revealed a petition filed by Cyrus Mistry’s family in the National Company Law Tribunal. BloombergQuint is in possession of the documents filed with the NCLT.
Two investment companies owned by Mistry’s family have filed a case of oppression and mismanagement against Tata Sons and its directors at the NCLT, just a day after Cyrus Mistry resigned from the board of six Tata Group companies.
The Petition Says
The Tata Sons board met on June 29 and June 30, its third meeting in financial year 2016-17, to review the Group’s and its operating companies’ financial performance for the financial year 2015-16.
The petition reveals that TTSL was represented by its Managing Director, N Srinath, and the Head of Mergers and Acquisitions at Tata Sons, Ajit Krishnakumar, who were asked to make a presentation on the performance of the company.
Meeting Minutes
Nitin Nohria who was also present during the board meeting apprised the Tata Sons board about his discussions with the CEO of Vodafone who continued to be interested in acquiring TTSL, but post listing of their own entity by issue of their stock.
Srinath and Krishnakumar also informed the board about their discussions with various telecom players.
The board is said to have agreed to invest Rs 10,000 crore in TTSL to reduce its debt, which would bring down the cost of closure earlier identified at Rs 24,000 crore, besides reducing interest and borrowing cost, the minutes of the board meeting said.
The board also contemplated requesting banks to convert a part of TTSL’s debt into equity with a back stop from Tata Sons if required. Nohria also suggested that it should be clarified that Tata Sons is not a back stop for the borrowings of other Tata Group companies, the disclosure added.
Tata Trusts Nominee Was Negotiating With Vodafone Plc To Sell Tata Teleservices - Bloomberg Quint
Two investment companies owned by Mistry’s family have filed a case of oppression and mismanagement against Tata Sons and its directors at the NCLT, just a day after Cyrus Mistry resigned from the board of six Tata Group companies.
The Petition Says
The Tata Sons board met on June 29 and June 30, its third meeting in financial year 2016-17, to review the Group’s and its operating companies’ financial performance for the financial year 2015-16.
The petition reveals that TTSL was represented by its Managing Director, N Srinath, and the Head of Mergers and Acquisitions at Tata Sons, Ajit Krishnakumar, who were asked to make a presentation on the performance of the company.
Meeting Minutes
Nitin Nohria who was also present during the board meeting apprised the Tata Sons board about his discussions with the CEO of Vodafone who continued to be interested in acquiring TTSL, but post listing of their own entity by issue of their stock.
Srinath and Krishnakumar also informed the board about their discussions with various telecom players.
The board is said to have agreed to invest Rs 10,000 crore in TTSL to reduce its debt, which would bring down the cost of closure earlier identified at Rs 24,000 crore, besides reducing interest and borrowing cost, the minutes of the board meeting said.
The board also contemplated requesting banks to convert a part of TTSL’s debt into equity with a back stop from Tata Sons if required. Nohria also suggested that it should be clarified that Tata Sons is not a back stop for the borrowings of other Tata Group companies, the disclosure added.
Tata Trusts Nominee Was Negotiating With Vodafone Plc To Sell Tata Teleservices - Bloomberg Quint
