New Delhi/Mumbai: In one of the biggest stake sales by a domestic firm to a foreign company, UK-based Diageo Plc will buy a 53.4 per cent stake in Vijay Mallya-led United Spirits Ltd (USL) for Rs 11,166.5 crore in a multi-structured deal.
The development comes at a time when Mallya is trying to overcome financial problems in his grounded Kingfisher Airlines.
"This is not a sellout; it's my appreciation of needs... I have recognised the consolidation needs (of Diageo) and wholeheartedly appreciate it... I have not sold any family jewel but embellished it," Mallya said after announcing the deal.
Mallya stressed that the money received from Diageo will not be used to bail out the beleaguered airline.
Following the completion of the stake acquisition, which took six years to materialise, India will become the second-largest market for Diageo after the US.
10/11/12 Business Today
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The development comes at a time when Mallya is trying to overcome financial problems in his grounded Kingfisher Airlines.
"This is not a sellout; it's my appreciation of needs... I have recognised the consolidation needs (of Diageo) and wholeheartedly appreciate it... I have not sold any family jewel but embellished it," Mallya said after announcing the deal.
Mallya stressed that the money received from Diageo will not be used to bail out the beleaguered airline.
Following the completion of the stake acquisition, which took six years to materialise, India will become the second-largest market for Diageo after the US.
10/11/12 Business Today
