Godfrey Phillips on January 28 rejected claims that its promoter, Modi Enterprises, plans to sell stake in the cigarette-maker.The company issued a clarification to exchanges following tweets by Lalit Modi where he said that all assets of the KK-Modi owned Modi Enterprises were up for sale.
Just to set the record straight. Yes all Assets of the #kkmodi group are going on sale. I mean all. The other 3 trustees wanted to continue running the business. But I felt post my father passing away - the value will deplete. I voted for sale. https://t.co/dJOIYsevJR. Sale On pic.twitter.com/lKOKZXP04z
— Lalit Kumar Modi (@LalitKModi) January 27, 2020
"The company would like to clarify that it is neither engaged nor privy to any such discussions on rumoured potential transaction by its promoters," Godfrey Phillips said in the statement. It dismissed claims of the company having been "put on the block by its key promoter entities" that have surfaced following the tweets by late industrialist KK Modi's son Lalit Kumar Modi.
Additionally, the statement noted, "The company has also received a clarification from its significant promoter that there has been no decision to put its assets on sale."
Godfrey Phillips India, the manufacturer of Marlboro cigarettes in India, currently has two major stakeholders – Phillip Morris (which owns 25.1 percent) and the KK Modi Group (47.09 percent).
In his tweet, Lalit Modi mentioned that the group, however, would retain its stake in Colorbar, Ego Italian, Beacon Travels and the education businesses.
Despite the clarification, the Godfrey Phillips India counter was quoting Rs 1,378, down Rs 60.75, or 4.22 percent, at 14:52 hours.