Bangalore: Diageo has made known its strong disagreement with the order of the Karnataka High Court, joining Vijay Mallya who this week has asked for a redressal of certain facts in the judgment.
The order passed by a division bench consisting of Justice N Kumar and Justice Rathnakala on December 20 annulled the sale of UB Holdings stake in United Spirits Ltd to Diageo in a transaction worth about Rs 1460 crore for over 10 million shares.
"Having reviewed the detail of the Appeal Court judgment, Diageo is of the view that the decision was wrong in law and based on erroneous facts," the company said in a statement.
Diageo said it believes that its purchase of United Spirits' shares from UB Holdings is "genuine and bona fide",notwithstanding the pronouncements of the Appeal Court. Creditors to UB Holdings, fighting for dues of close to Rs 600 crore and corporate gurantees for loans to Kingfisher Airlines worth over Rs 6000 crore, alleged that the UB Holdings has not only entered into the transaction without their consent but also at a less profitable rate. Besides, the transaction was entered into at a time when 5 winding up petitions were filed against UB Holdings for nonpayment of the dues.
10/01/13 Antonita Madonna/Business Standard
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The order passed by a division bench consisting of Justice N Kumar and Justice Rathnakala on December 20 annulled the sale of UB Holdings stake in United Spirits Ltd to Diageo in a transaction worth about Rs 1460 crore for over 10 million shares.
"Having reviewed the detail of the Appeal Court judgment, Diageo is of the view that the decision was wrong in law and based on erroneous facts," the company said in a statement.
Diageo said it believes that its purchase of United Spirits' shares from UB Holdings is "genuine and bona fide",notwithstanding the pronouncements of the Appeal Court. Creditors to UB Holdings, fighting for dues of close to Rs 600 crore and corporate gurantees for loans to Kingfisher Airlines worth over Rs 6000 crore, alleged that the UB Holdings has not only entered into the transaction without their consent but also at a less profitable rate. Besides, the transaction was entered into at a time when 5 winding up petitions were filed against UB Holdings for nonpayment of the dues.
10/01/13 Antonita Madonna/Business Standard
