Cyrus Mistry, the former chairman of Tata Sons, has dismissed allegations that he had kept the Tata Trusts in the dark about the Rs.9,300 crore acquisition of Welspun’s renewable energy assets by Tata Power earlier this year.
This was reportedly cited as a major reason for his dismissal from the top position.
“It is surprising that Mr. (Ratan) Tata has sought to justify Monday’s conduct by making vague public statements that are contrary to his knowledge and contrary to the records of the Tata Group,” a statement issued by Cyrus Mistry’s office said.
“In the early part of this year, Tata Power made a presentation to Tata Sons that a significant focus area would be renewable sector. The Tata Sons Board appreciated it. On May 31, 2016, a note was circulated to the board of Tata Sons and to Mr. Ratan Tata providing information about the proposed Welspun transaction and asking them if they needed any further information.”
One reply
Only Mr. Vijay Singh, a nominee director of the Tata Trusts, had replied, Mr. Mistry said, adding that Mr. Singh had expressed his positive appreciation.
“With no other view having been expressed, Tata Power executed the agreement on June 12, 2016. Thereafter, a series of discussions took place in the presence of Mr. Tata, in his capacity as Chairman Emeritus and trustee, and Mr. N A Soonawala, trustee of some Tata Trusts. These needed much more interaction with the merchant bankers to the transaction,” according to the statement.
Tata Trusts were fully involved in the negotiations, the statement added. “Mr Soonawala has strong views on how this listed company must structure its transaction and proceeded to have further meetings with the merchant banker.”
The transaction was again discussed at the Tata Sons board and on June 30, 2016 Anil Sardana, CEO, Tata Power made a detailed presentation to the Tata Sons board.
“The discussions covered all aspects of the transaction including the structure and the Tata Sons board unanimously approved the transaction. The minutes recorded that Nitin Nohria and Vijay Singh “after discussing the proposal with Mr. Tata and Mr. Soonawala” reiterated their view that the proposal should have come to the trustees earlier and approved the transaction.
So, “to even suggest that Tata Sons board including the nominee directors of Tata Trusts had not been adequately informed is contrary to the factual record.”
'Will issue statement next week'
A Tata Sons spokesman said Mr. Mistry's statements were incorrect and do not "reveal the facts." He added that Tata Sons would issue a statement next week.
