Published on Wed, Dec 23, 2009 at 23:10 | Source : CNBC-TV18
Updated at Thu, Dec 24, 2009 at 11:34
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Diageo Radico JV gets FIPB nod for 100% FDI
Diageo has reasons to say cheers. The Diageo Radico JV has received a nod from the Foreign Investment Promotion Board or FIPB for 100% FDI, reports CNBC-TV18’s Siddharth Zarabi.
Diageo has reasons to say cheers. The Diageo Radico JV has received a nod from the Foreign Investment Promotion Board or FIPB for 100% FDI, reports CNBC-TV18's Siddharth Zarabi. The transaction will happen by way of preferential allotment of 1.75 crore fully convertible preference shares.
Sources said an application was made to the FIPB where Netherlands-based Diageo Highlands, which owns Diageo India, had proposed to raise its stake, which is currently at 50% in a joint venture called Diageo Radico Distilleries to 100%.
The company says this is an enabling resolution where both partners are seeking to induct funds into the company to the tune of Rs 17.5 crore each. The shareholding pattern will not be altered.
The company has a huge debt burden, and doesn't have any products in the market right now. There are substantial accumulated losses to the extent of Rs 30-35 crore.
Officials at Radico Khaitan maintained that this does not imply in any way that Radico Khaitan will exit the joint venture. The Rs 17.5 crore amount is not very difficult to fund by March 2010, the officials said.
Diageo has reasons to say cheers. The Diageo Radico JV has received a nod from the Foreign Investment Promotion Board or FIPB for 100% FDI, reports CNBC-TV18's Siddharth Zarabi. The transaction will happen by way of preferential allotment of 1.75 crore fully convertible preference shares.
