The Shapoorji Pallonji Group is seeking regulatory and other stakeholder clearances for a major restructuring that will create two holding companies overseeing businesses ranging from construction and real estate to oil & gas, according to a Mint report.
The two holding companies, S.P. Finance and S.C. Finance will each hold 47.69% stake in the Shapoorji Pallonji Co. Pvt. Ltd, the report stated quoting sources who refused to be named. Shapoorji Pallonji Co. Pvt. Ltd will cease to exist after the restructuring.
These holding companies will be supervised by an advisory board that will include four family members - Shapoor and his son, Pallon, and late Cyrus Mistry’s two children, Firoz and Zahan.
The intention is to demarcate the responsibilities of promoters as custodians and the management.
“Each vertical will not have any cross-holdings. Every cluster drives its own destiny and will be independently accountable to shareholders. The families will play more of an ownership role than that of managers," the report cited one of the sources as saying.
The two brothers, Shapoor and Cyrus, had conceived the structure and held extensive discussions, claimed one of the sources in the report. Cyrus died in a car crash last year in September.
The clearances for the reorganisation plans are expected to come by the end of September.
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