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Last Updated : Jan 15, 2019 09:45 AM IST | Source: Moneycontrol.com

United Spirits gains on 100% stake sale in subsidiary

Post the completion of this sale, the company will hold no shares in FSWL, and FSWL will cease to be a subsidiary of the company.

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Shares of United Spirits gained nearly 1 percent intraday Tuesday after company entered into an agreement for stake sale in subsidiary company.

The company has entered into an agreement for the sale of all the equity shares held by the company, constituting 100 percent of the paid up equity share capital of its wholly owned subsidiary, Four Seasons Wines (FSWL) along with the brands, company said in release.

The shares are being sold to Quintela Assets and Grover Zampa Vineyards, at a total consideration of Rs 31.86 crore, it added.

Post the completion of this sale, the company will hold no shares in FSWL, and FSWL will cease to be a subsidiary of the company.

The expected date of completion of sale is January 16, 2019.

Sanjeev Churiwala, Executive Director & Chief Financial Officer, Diageo India said, "This deal brings us a step closer to the structural rationalisation and simplification of our India business."

"The FSWL wine business is a niche but a small part of the overall Diageo India portfolio and the sale will enable us to focus on our premiumisation strategy and grow our core Spirits business in India," he added.

At 09:32 hrs United Spirits was quoting at Rs 600.90, up Rs 4.05, or 0.68 percent on the BSE.

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First Published on Jan 15, 2019 09:34 am
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