United Spirits sells 53% stake to Diageo
When asked about the debt position, he said: "At present, USL has a debt of about Rs 8,300 crore. The money, which will come into USL, will primarily be used to reduce debt."
Asked if this deal will affect USL's Whyte & Mackay in anyway, Mallya replied in negative and said it will not be treated separately.
On its need to acquire a stake in an India entity, Menezes said: "We are entering into a partnership today. Our aim is to consolidate USL into Diageo... We hold stakes in local companies and that is the strategy in India as well."
Following completion of these agreements, Mallya will continue in his current role as Chairman of USL, and UBHL and he will work with Diageo to build the USL business as the current consumer trends for premiumisation grow in India. Commenting on the deal, Diageo Plc Chief Executive Paul S Walsh said: "The combination of USL's strong business with the capabilities which Diageo brings as the world's leading premium drinks company will ensure that USL continues to lead the industry in India."
Citi Group was the lead financial adviser to United Breweries (Holdings) Ltd and United Spirits Ltd.
Meanwhile, Diageo and Mallya also inked a pact to form a 50:50 joint venture which will own United National Breweries' traditional sorghum beer business in South Africa.
Diageo's investment for its 50 per cent interest in the joint venture is expected to be around USD 36 million, the joint statement said.
"Diageo and Mallya
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