Tata Sons board was aware of Welspun buy: Mistry

Former Tata group chairman Cyrus Mistry said on Friday that he had kept the entire Tata Sons board informed of the Tata Power deal to buy Welspun’s renewable power assets in June this year.

In a statement, Mistry said Tata group’s interim chairman Ratan Tata sought to justify his ouster on Monday by making “vague public statements that are contrary to his knowledge and contrary to the records of the Tata group. Tata sources said the trustees of Tata Trusts were not kept informed about the transaction with Welspun Power”.

Mistry was reacting to reports that Tata came to know about Tata Power’s Rs 9,500-crore transaction via media. A Tata Sons spokesman told this paper that he was not aware of this issue.

Mistry said all the board notes were shared with Tata in his capacity as Chairman Emeritus of Tata Sons. He added that Tata Power had made a presentation to the Tata Sons board early this year that one key focus area would be the renewables sector – something which was appreciated by the Tata Sons board.

“On May 31, 2016, a note was circulated to the board of Tata Sons and to Tata providing information about the proposed Welspun transaction, and asking them if they needed any further information. The only board member to reply was Vijay Singh, a nominee director of Tata Trusts on the Tata Sons board, who appreciated the plan. And, with no other view having been expressed, Tata Power executed the agreement on June 12, 2016.” 

Mistry added that a series of discussions took place in the presence of Tata and trustee NA Soonawala, including detailed interaction with merchant bankers to the transaction. “Soonawala had strong views on how this listed operating company must structure its transaction and proceeded to have further meetings with the merchant banker.” 

The transaction was discussed again at the Tata Sons board meeting as the funding required shareholder approval and a detailed presentation was made by Anil Sardana, CEO of Tata Power. On June 30, 2016, Mistry said. 

“The discussion covered all aspects of the transaction including the structure and the Tata Sons board unanimously approved the transaction. The minutes record that Nitin Nohria and Vijay Singh after discussing the proposal with Mr Tata and Mr Soonawala, while reiterating their view that the proposal should have come to the trustees earlier, approved the transaction," Mistry's statement said. 

A top official of Welspun declined to comment on the issue.