Mumbai: There's finally hope for Kingfisher Airlines and Vijay Mallya’s UB group. Diageo Plc, the maker of Johnnie Walker Scotch, will buy a 53.4 per cent stake in United Spirits Ltd for Rs 11,166.5 crore (around $ 2.04 billion), providing Vijay Mallya a breather from the woes of grounded Kingfisher Airlines and setting the stage for a possible comeback.
In the biggest inbound acquisition deal after UK’s oil firm Cairn Energy sold a majority stake in its Indian business to Vedanta Resources Plc last year, the UK firm and UB group firms — United Breweries (Holdings) Limited and United Spirits Limited — have signed an agreement under which Diageo would acquire a 27.4 per cent stake in USL, the leading spirits company in India. The consideration will be Rs 1,440 per share and the total cost for this stake would be Rs 5,725.4 crore (around 660 million pounds). Mallya will continue in his current role as chairman of USL, and UBHL and he will work with Diageo to build the USL business.
09/11/12 Indian Express
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In the biggest inbound acquisition deal after UK’s oil firm Cairn Energy sold a majority stake in its Indian business to Vedanta Resources Plc last year, the UK firm and UB group firms — United Breweries (Holdings) Limited and United Spirits Limited — have signed an agreement under which Diageo would acquire a 27.4 per cent stake in USL, the leading spirits company in India. The consideration will be Rs 1,440 per share and the total cost for this stake would be Rs 5,725.4 crore (around 660 million pounds). Mallya will continue in his current role as chairman of USL, and UBHL and he will work with Diageo to build the USL business.
09/11/12 Indian Express
