Shapoorji Pallonji Group, controlled by billionaire Shapoor Mistry, is weighing asset sales including a controlling stake in its flagship engineering firm that could raise about $2 billion, according to people familiar with the matter.
Considerations are at an early stage and SP Group can decide to keep the assets for longer, the people said. A representative for SP Group didn’t provide any immediate comment.
The Mistry family lost two of its key members within a span of three months last year. Pallonji Mistry, Shapoor’s father and the founder of SP Group, died at 93 in late June. Cyrus Mistry, Shapoor’s younger brother, was killed in a car accident in early September. Most of the family’s $29 billion wealth is derived from an about 18% stake in Tata Sons Pvt., the main holding company of India’s diversified conglomerate Tata Group, according to the Bloomberg Billionaires Index. However, their Tata Sons stake, equivalent to about 90% of the family’s fortune, is locked up in a festering feud with Tata Group.
SP Group is in talks to raise $1.75 billion by pledging the remaining half of its stake in Tata Sons, Economic Times reported last week, citing unidentified people with knowledge of the matter. The company is looking to use the funds to repay obligations and infuse cash into operating companies, the report said.
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