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Godfrey Phillips promoters work out ₹11,000-crore settlement; Lalit Modi to get ₹917 crore

PALAK SHAH Mumbai | Updated on February 20, 2020 Published on February 20, 2020

KK Modi family to switch to arbitration in Singapore; money to be divided equally among four families that are part of the trust

The family dispute involving the KK Modi Group, the promoters of Godfrey Philips, which sells the Marlboro brand of cigarettes, is inching towards a resolution.

Documents in the possession of BusinessLine show that ₹11,002 crore, or approximately $1.54 billion, will be divided equally among the four families that form the KK Modi Family Trust. The settlement will be carried out through an arbitration process in Singapore.

Lalit Modi, the former IPL Commissioner who is currently ensconced in London, will receive ₹917 crore initially as part of the settlement, the documents show. His son Ruchir Modi, who is at the helm at Godfrey Phillips, and daughter Aliya Modi, too, will receive ₹917 crore each as part of the settlement.

Samir Modi, the younger brother of Lalit Modi, his wife Shivani Modi and two daughters — Jayati and Vedika Modi — will receive ₹687.5 crore each. Lalit Modi’s sister Charu Bharti, along with her two family members, will receive ₹917 crore each.

Lalit Modi’s mother Bina Modi will get ₹2,750 crore. After her demise, the amount will be distributed — ₹275 crore each — to the 10 family members, the settlement documents say.

 

Distribution of funds of KKM Family Trust

 

 

 

Godfrey Phillips on the block

BusinessLine first broke the story on January 27 about the KK Modi family — one of India’s oldest business families — putting Godfrey Phillips on the block. The family trust has approached global investment bankers, including Goldman Sachs, Morgan Stanley, JP Morgan and Credit Suisse, for the mandate to handle their stake sale.

KK Modi Investments and Financials owns a 29.23 per cent stake in Godfrey Family Trust and the recent settlement terms say the entire stake sale money will go to the KK Modi Family Trust, which will further distribute it. Another 12.6 per cent stake in Godfrey Phillips is held by Indofill Industries, 1.01 per cent by Super Investments, 0.15 per cent by UK Modi Branch (Longwell Invest), 0.19 per cent by BKM Branch, 0.15 per cent by Swasth Invest and 0.15 per cent by SK Modi Branch. All these are KK Modi Family held entities.

The UK’s Phillip Moris Global Brands owns a 25 per cent stake and a foreign institutional investor, Jupiter India, owns a 27.81 per cent stake in Godfrey Phillips.

An e-mail sent to Lalit Modi and Godfrey Phillips did not elicit an immediate response. Source close to the family confirmed the documents presented and the initiation of an arbitration process in Singapore.

 

 

The $1.5-b settlement

It will be divided equally among the four families that form part of the KK Modi Family Trust

Lalit Modi’s mother Bina Modi will get ₹2,750 crore

Lalit Modi will receive ₹917 crore

His son Ruchir Modi and daughter Aliya Modi - ₹917 crore each

Samir Modi, the younger brother of Lalit Modi, his wife Shivani Modi and two daughters - ₹687.5 crore each

Lalit Modi’s sister Charu Bharti, along with her two family members, will receive ₹917 crore each

 

Allso read: Key promoter entities put Godfrey Phillips on the block

 

 

Published on February 20, 2020
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