The Diageo Group has picked up 53.4% stake in Unitied Spirits (USL) for USD 2 billion, say sources who further say chairman Vijay Mallya will lose controlling stake in the company.
The UK-based company which will become the biggest single shareholder in USL by a combination of share purchase from promoters and buying new shares, but this is yet to be confirmed after market hours when the deal will be announced officially.
As per rules, post the deal announcement, Diageo will have to launch a mandatory open offer for at least 26 per cent more of United Spirits since it has acquired majority stakes.
Diageo, the world's biggest spirits group and maker of brands including Johnnie Walker whisky, Guinness beer and Smirnoff vodka, has long awaited an expanded presence in India. The deal would ramp up Diageo's presence in the world's largest whisky market, while Vijay Mallya will gain much-needed cash to reduce company debt. It could also free up funds to revive his grounded Kingfisher Airlines, say reports.
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