New Delhi: Vijay Mallya owned United Breweries on Friday signed a $2 billion deal with Diageo group and sold controlling stake of 53.4 per cent in United Spirits Limited (USL). Announcing the deal, Mallya said, "The cash infusion will help USL de-leverage itself. It is a win-win situation for both USL and Diageo."
Ivan Menezen, the CEO of Diageo, seconded Mallya. He said, "The alcohol market in India will grow 15 per cent year-on-year. This deal will transform Diageo's position in India. It will enhance our position as the world's leading premium brand maker. This is a win-win combination."
Diageo will buy the 53.4 per cent stake for Rs 11,165 crore, first buying 27.4 per cent direct stake in USL, and then buying 19.3 per cent of USL from UB group's subsidiaries.
It will then buy an additional stake through an open offer. Mallya will continue as the Chairman. The deal allows him to wipe out Kingfisher Airlines' huge debt.