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