Bangalore: British drinks giant Diageo got a breather on Monday as the Supreme Court allowed the company to retain its 6.98% share holding in United Spirits Ltd (USL) until April, when the court will hear the matter again.
The Court said that 'status quo' must be maintained in the sale of USL to Diageo, which the latter acquired last year from United Breweries Holdings (UBHL), the investment arm of Vijay Mallya's UB Group.
Diageo had gone on an appeal in the SC after the Karnataka High Court annulled its 6.98% stake buy in USL from UBHL in December last year, citing that it was not a bona fide transaction. The HC passed the judgement after hearing petitions filed by UBHL creditors, who are seeking the winding up of the company. UBHL has an over Rs 6,000 crore exposure in the grounded Kingfisher Airlines, the loss making entity of the UB Group since its inception in 2005.
11/02/14 Times of India
To Read the News in full at Source, Click the Headline
The Court said that 'status quo' must be maintained in the sale of USL to Diageo, which the latter acquired last year from United Breweries Holdings (UBHL), the investment arm of Vijay Mallya's UB Group.
Diageo had gone on an appeal in the SC after the Karnataka High Court annulled its 6.98% stake buy in USL from UBHL in December last year, citing that it was not a bona fide transaction. The HC passed the judgement after hearing petitions filed by UBHL creditors, who are seeking the winding up of the company. UBHL has an over Rs 6,000 crore exposure in the grounded Kingfisher Airlines, the loss making entity of the UB Group since its inception in 2005.
11/02/14 Times of India
