Share purchase agreement awaits Karnataka HC decision on Kingfisher creditors' plea.
Indian billionaire Vijay Mallya's move to rope in Diageo -- the world's largest spirits firm -- as a strategic partner in his flagship firm United Spirits has hit an anti-trust roadblock. The companies have been in discussions for almost a year to hammer out a deal in which Diageo was expected to pick up a little over 14 per cent stake in USL for around Rs 1,200 crore.
Global liquor major Diageo Plc has submitted details sought by market regulator Sebi regarding its Rs 5,441 crore open offer for buying stake in Vijay Mallya-led United Spirits.
To pay 10 per cent interest for the period of delay.
As part of their deal Diageo agreed to pay Mallya, $75 million for stepping down as chairman of United Spirits and for entering into a non-compete pact
'It is surprising and unfortunate that unfounded allegations are now being made without any reference to me whatsoever,' Vijay Mallya said.
As part of the deal for purchase of 53.4 per cent stake in Vijay Mallya-led UB group's United Spirits Ltd, Diageo has made a Rs 5,441 crore open offer for purchase of 26 per cent stake in the company from non-promoter shareholders.
The offer is to close on April 26 and the price is fixed at Rs 1,440 a share.
The next step will be the 10 per cent preferential allotment, which the UB Group promoters will be making in favour of Diageo.
The world's largest spirits company Diageo is upping its play in India, even as the home-grown UB Group sets out to conquer mature global markets.
UK-based Diageo paid Rs 3,030 for a share of United Spirits Ltd, more than double of Rs 1,440 it offered in the previous bid last year.
The offer, open on April 10-26, was meant to acquire close to 38 million shares at Rs 1,440 a piece.
However, even after finalising the multi-pronged cross-border Rs 11,165-crore deal in November 2012, Diageo's wait for acquiring a decent stake in India's leading whisky maker, United Spirits, seems to be getting longer and longer.
There is no way out for Mallya's debt problems unless he sells some of his stake, says an analyst.
Sebi issued final observations, necessary for the offer and the deal as a whole to go through, on May 21.
US market regulator SEC has slapped penalties of over $16 million on spirits giant Diageo Plc for indulging in corrupt practices in India, Thailand and South Korea to push up sales of its leading brands like Johnnie Walker.
Diageo, under a share purchase agreement (SPA) with UBHL and various other sellers, had acquired 21,767,749 shares (14.98 per cent) in USL
Acquires 50 per cent stake for $36 million in United National Breweries.
SBI had moved the Debt Recovery Tribunal because Mallya owes over Rs 7,200 crore to a consortium of banks led by State Bank of India
Diageo may not be able to recover $135 mn loan from Mallya firm
The focus will be on moving United Spirits consumers up the value chain.
Diageo asks Mallya to quit USL board; alleges fund diversion
He led the takeover of Vijay Mallya's United Spirits.
The world's largest liquor maker Diageo Plc on Tuesday made an open offer worth Rs 11,448.91 crore (Rs 114.48 billion) to acquire an additional 26 per cent stake in United Spirits Ltd.
The stock of United Spirits, the country's largest liquor company by market capitalisation (mcap), has gained 11 per cent over the past week on double-digit growth guidance, rising premiumisation trend, operationally in-line performance in the March (Q4FY24) quarter and a rally in consumer stocks. The revenue growth of the company came in at 7 per cent year-on-year (Y-o-Y) mirroring the growth of the prestige and above (P&A) segment. This segment comprising premium brands accounts for 88 per cent of the revenues.
The CCI in an order dated February 26 approved Diageo's proposed majority stake purchase in Mallya-led United Spirits, saying the deal would not have adverse impact on competition.
It said a meeting would be held with the airline's management soon.
The question now is, legal experts say, whether the new norms would come into effect prospectively or retrospectively.
UK-based Diageo's acquisition of 53.4 per cent stake in Vijay Mallya-led United Spirits for Rs 11,166.5 crore ($2 billion) could be the biggest inbound M&A deal so far this year.
Targets women with new offerings such as Baileys cream liqueur and Nilaya. Liquor maker Diageo India is planning a big marketing push for its core brands such as Johnnie Walker, Smirnoff and newer offerings in India such as Baileys and Nilaya. Both Johnnie Walker and Smirnoff have nearly 90 per cent share in the premium segment of the scotch and vodka market.
In a filing to the BSE, United Spirits said the manager to the open offer, JM Financial Institutional Securities Pvt Ltd has informed that the offer price shall remain at Rs 1,440 per equity share.
Fresh meat and seafood delivery unicorn Licious is intensifying its talent acquisition endeavours as it pursues profitability and readies for an initial public offering (IPO) within the next 24 months. Delightful Gourmet, Licious' parent company, has named 39-year-old Karishma Gupta as its new chief financial officer (CFO). Her appointment aligns with Licious' drive for profitable growth through an omnichannel strategy.
Interview with Joint President & CFO, United Spirits Limited.
Move comes as huge provisions for bad loans push loss to Rs 4,488 crore.
Sources say Diageo is pushing for a management control of United Spirits; and this has led Mallya to rethink on the offer.
Promoter stake rises seven per cent in revised filing.
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According to data reviewed by Business Standard, the dues from UB Holdings alone to USL shot up by 4.3 times to Rs 1,188 crore (Rs 11.88 billion) by the end of the last financial year, compared to an outstanding of Rs 272 crore (Rs 2.72 billion) by the end of FY12.
Deal will help the Diageo to ramp up its presence in the global whiskey market and Vijay Mallya to repay debts of its group company Kingfisher Airlines.
'I think my first obsessive, possessive and only half-requited -- as we would joke -- 'love' was Ivan. I saw him first slouching down the corridor of St Stephen's College nearly 50 years ago and was instantly smitten (as was everyone else around him).'
Educational technology company Byju's chief financial officer Ajay Goel has quit after completing the audit process for the financial year 2022 and will return to Vedanta, the company said in a statement. The edtech major has roped in industry veteran Pradip Kanakia as senior advisor, and president (finance) Nitin Golani has been given additional responsibility as India chief finance officer (CFO) to handle the finance function of the company.
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