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, according to a Hindu BusinessLine report.

Share Market Live

NSE

An amount of Rs 11,002 crore, or approximately $1.54 billion, will be divided equally among the four families that form the KK Modi Family Trust, the report added, while adding the settlement will be carried out through an arbitration process in Singapore.

According to the report, former IPL Commissioner Lalit Modi, who is currently ensconced in London, will receive Rs 917 crore initially as part of the settlement, while his son Ruchir Modi, who is at the helm at Godfrey Phillips, and daughter Aliya Modi, too, will receive Rs 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 Rs 687.5 crore each, the newspaper report added.

Lalit Modi’s sister Charu Bharti, along with her two family members, will receive Rs 917 crore each while Lalit Modi’s mother Bina Modi will get Rs 2,750 crore. After her demise, the amount will be distributed — Rs 275 crore each — to the 10 family members, the report said.

The KK Modi family — one of India’s oldest business families — is putting Godfrey Phillips on the block. KK Modi Investments and Financials owns a 29.23 percent 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, the report said.

Another 12.6 percent stake in Godfrey Phillips is held by Indofill Industries, 1.01 percent by Super Investments, 0.15 percent by UK Modi Branch (Longwell Invest), 0.19 percent by BKM Branch, 0.15 percent by Swasth Invest and 0.15 percent by SK Modi Branch. All these are KK Modi Family held entities.

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

First Published:Feb 21, 2020 10:47 AM IST