Stating that LIC is worried about erosion in shareholder value at Tata companies, the insurer on Monday said that it will most likely meet top Tata Sons officials soon.
Stating that LIC is worried about erosion in shareholder value at Tata companies, the insurer on Monday told ET Now that it will most likely meet top Tata Sons officials soon. “We will seek exact timeline for appointing a new Tata Sons Chairman. We will also ask Tata Sons to ensure that there are no promoter-chairman conflicts in future.” The insurer also wants clarity from Tata Sons board on the roadmap for group companies. Meanwhile, S&P Global Ratings today said the continuing discord between the shareholders of Tata Group holding firm Tata Sons Ltd, has created uncertainty at the board level for group companies and could lead to slow decision-making in these entities.
Expecting the group companies to be all professionally managed, the US-based firm said that it hoped that all these firms will continue to deliver on their business and financial plans as they are “currently unaffected by the developments.” “The continuing discord between the shareholders of Tata Sons Ltd (unrated), the holding company of the India-based Tata group, has created uncertainty at the board level for the group companies,” S&P Global Ratings said.
The Group companies which S&P rates are Tata Steel, UK Holdings Ltd, Tata Steel, Tata Power, Tata Motors, Jaguar Land Rover Automotive PLC and Tata Consultancy Services Ltd. “We will review our assessment if we see greater control of Tata Sons over the board, strategy, and cash flows of individual companies,” S&P said. S&P said it “notes” the sudden removal of Tata Sons Ltd. chairman Cyrus Mistry on November 4, and some independent directors can provide clear direction to individual companies and help restore the group’s credibility, and restore investor confidence in the group’s corporate governance practices,” S&P said.
The recent events at Tata Group could lead to slow decision-making at some of these companies, it noted. “However, we believe that the companies are all professionally managed and will continue to deliver on their business and financial plans, despite the recent developments,” it said.