The UB group has agreed to cede control of United Spirits to Diageo, reports CNBC-TV18's Kritika Saxena.
Vijay Mallya and senior executives of United Spirits have been in London to finalise the final contours of the deal. A term sheet is ready and is likely to be signed soon, after October 16. There has been buzz for over a month that the deal is close to the finish line.
Although, there are a lot of contours to be figured out yet, the deal is to be valued between Rs 1400-1500 crore. More importantly, the UB Group has agreed to give up controlling stake in the company and is also likely to give up the management control. Around 27% of UB Group’s promoter holding will be given to Diageo, report sources.
As far as management control is concerned, Vijay Mallya and a couple of United Spirits shareholders will continue to remain on the board. But, the majority will remain with Diageo. It is also believed that Vijay Mallya may continue as the chairman of the board, but the roles of CEO, CFO etc will be taken over by new executives of Diageo.