Pharma tycoon Adar Poonawalla has emerged as a potential suitor for the Indian Premier League franchise Royal Challengers Bengaluru, sparking fresh speculation around a possible change in ownership of one of the league's most high-profile teams.
Diageo's India arm will begin a strategic review of its investment in a unit which owns the IPL team Royal Challengers Bengaluru, the spirits maker said on Wednesday.
United Spirits Ltd (USL), flagship spirits company of the UB Group, has finally decided on foreign currency convertible bonds (FCCBs) to raise as much as $225 million (Rs 1,190 crore). The plan is to raise up to $175 million, plus an over-allotment option of $50 million.
The companies have postponed their open offer, too.
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 price remains the same at Rs 1,440 per share.
Brewing billionaire Vijay Mallya's woes seem to be compounding. His flagship spirits arm, United Spirits Ltd (USL), is starting to mirror Kingfisher Airlines.
On November 9, 2012 Diageo had announced buying a 53.4 per cent stake in USL for Rs 11,166.5 crore (Rs 111.66 billion) in a multi-structured deal.
United Spirits wants to align its resources to meet its goals of becoming a trusted and respected consumer goods company.
United Spirits Ltd, owned by Vijay Mallya-controlled UB Group, is set to become the world's second-largest spirits firm by volumes, dislodging Paris-headquartered Pernod Ricard.
Nearly six months after he put the stake sale process of Whyte & Mackay on the fast track to find a solution to United Spirits' high leverage, UB Group Chairman Vijay Mallya is understood to be nearing a deal to offload 49 per cent stake in the flagship subsidiary.
As per the latest shareholding pattern data of the company, foreign institutional investors held 45.81 per cent stake in Vijay Mallya-led UB group firm United Spirits Ltd as on December 31.
The firm has advised United Spirits Ltd's shareholders to vote against the proposal to re-appoint Mallya as director on the board.
For the first nine months of the current financial year, net sales rose by close to 37 per cent to Rs 1,470 crore (Rs 14.7 billion( over the previous corresponding period, while operating profit increased by another 37 per cent to Rs 322 crore (Rs 3.22 billion).
Sources say Diageo is pushing for a management control of United Spirits; and this has led Mallya to rethink on the offer.
Ever since Diageo struck a deal to buy controlling stake in United Spirits Ltd, the two companies have pulled all stops to ensure the "dream combination" gets all the regulatory clearances.
Banks who had lend to Kingfisher Air are finding it difficult to recover dues.
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.
With this, Heineken's stake has risen from 39% to 42.2%.
The sale came when Mallya was trapped in a sea of debt, mainly as a result of the losses his now grounded carrier, Kingfisher Airlines, had been piling.
The company secured independent valuation for these properties and had shared the same with Mallya
These transactions have come for shareholders approval because of requirements under the new companies law and amended listing agreements.
Firm makes disclosures of improper transactions worth Rs 1,225.3 crore with entities linked to beleaguered businessman
Ahmedabad-based Torrent Group has completed the acquisition of a majority 67 percent stake in Indian Premier League (IPL) franchise Gujarat Titans.
Vijay Mallya-promoted United Spirits Ltd has told its investors that at its current growth rate of 12 per cent annually, it will become the world's number one spirits company this fiscal.
Sebi on Friday barred fugitive businessman Vijay Mallya from the securities markets and restrained him from associating with any listed firm for three years in the matter of routing of funds to the Indian securities market using overseas bank accounts with UBS AG. The Indian government has been attempting to extradite Mallya from the United Kingdom to face fraud charges related to his now-defunct company Kingfisher Airlines. Mallya has been living in the United Kingdom since March 2016.
Billionaires Mukesh Ambani and Gautam Adani have pledged their support to the Indian armed forces, who are currently repelling intense shelling, gunfire, and drone attacks from Pakistan. "We are very proud of our Indian Armed Forces for Operation Sindoor. India stands united, fierce in resolve and unshakable in purpose, against the scourge of all forms of terrorism," Ambani, chairman and managing director of Reliance Industries Ltd, said in a statement.
Many states are realising that hosting mega events puts the spotlight on them and raises their profile.
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.
Market regulator Sebi has sought additional details from global liquor giant Diageo with regard to its Rs 5,441 crore (Rs 54.41 billion) open offer for acquiring 26 per cent stake in UB Group firm United Spirits Ltd.
Last month, India's AlcoBev industry pulled off a successful two-day showcase exhibition at the Hotel Renaissance in Powai. We got experts to show readers how they can create some mind-boggling cocktail concoctions, so watch and learn.
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.
He has also said that the overall mood of the Indian consumer remains subdued
'Our approach has been to work with consumers and help them drink better, not more.'
He sold 8.84% stake for Rs 55 crore based on average stock price in September quarter.
Rising income has allowed consumers to upgrade not just from country liquor to Indian-made foreign liquor, but also to better brands.
There is no way out for Mallya's debt problems unless he sells some of his stake, says an analyst.
United Spirits Ltd will launch five brands in China as part of its entry into the communist country's market.
According to the The Times, the move is a part of a drive to cut UB Group's $4 billion (2.5 billion pounds) debt.
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