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Vijay Mallya and Diageo separation fee: Flamboyant businessman Vijay Mallya will get $75 million (Rs 515 crore) from Diageo as part of an "agreement" for his exit from United Spirits, a company founded by his family and now run by the global liquor giant. Besides, Diageo has agreed that Vijay Mallya will have no "personal liability" to the UK-based company in relation to the findings of the alleged financial irregularities at the company that had triggered an acrimonious fight between them. (Express Photo)
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Kingfisher Airlines women staff to Vijay Mallya: "You evaded the recovery process then what are you other than absconder? Due to our curse you are facing humiliation daily. You not only killed Air Deccan (which Ambanis would have, otherwise, taken over) but also our mother Kingfisher Airlines which was feeding us. You should have gracefully exited like Capt Gopinath did when he was not able to manage the airline," the letter further said. (Express photo)
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Vijay Mallya and Diageo separation fee: Mahendra Kumar Sharma, an independent director, will be the new chairman of United Spirits. Giving details of the agreement reached with Vijay Mallya, Diageo said it has "agreed to pay USD 75 million to Mallya in consideration for his resignation and the termination of his appointment and governance rights and his relinquishing of the rights and benefits attached to his position as Chairman and non-executive director", among other factors. The payment is also for "his agreement to five-year global non-compete (excluding the UK), non-interference, non-solicitation and standstill undertakings, and his agreement that he and his affiliates will not pursue any claims against Diageo, USL and their affiliates". (Express Photo)
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Vijay Mallya case: "Please don't sling further mud on each other rather clean the mud which you already have and please spare a thought why Mallya not only paid but also compensated foreign employees leaving the people who elect you, high and dry. Please don't say it's private company as private company also come under the law of the land," it said. (Express photo)
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Vijay Mallya and Diageo separation fee: Diageo also said it has extended Smirnoff's sponsorship of the Force India Formula 1 team of which Mallya is team principal and part-owner for the next five seasons. The cost of this sponsorship continues to be USD 15 million per season. Commenting on the agreement with Mallya, Diageo's CEO Ivan Menezes said, "India is an exciting growth opportunity, and USL has the management team, strategy and capability to deliver on that opportunity. The agreement announced today is in the best interests of both Diageo and USL and allows USL to build on its strong platform in one of the biggest spirits markets in the world." (Express Photo)
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Vijay Mallya and Diageo separation fee: Diageo also said that USL's board will appoint Mahendra Kumar Sharma, currently independent non-executive director and Chairman of the Audit Committee of USL, as Chairman of USL. Diageo is the majority shareholder of USL with a 54.78 per cent holding, excluding the 2.38 per cent owned by the USL Benefit Trust. The company further said that the new pact ends Diageo's prior agreement with Mallya regarding his position at USL and "therefore brings to an end the uncertainty relating to the governance of USL". (Express Photo)
Vijay Mallya and Diageo separation fee: Regarding USD 75 million payment to Mallya, Diageo said it will be charged to exceptional items in the year ending June 30, 2016. Giving details, Diageo said the earlier agreement included obligations on Diageo to support Mallya continuing as Chairman and non-executive director of USL in the absence of certain default events. "Disputes that had arisen under that agreement are concluded by today's agreement and, accordingly, Mallya has resigned from his position as Chairman and non-executive director of USL, as well as from the boards of other USL group companies," it added. (Express Photo) -
Vijay Mallya and Diageo separation fee: In addition, Diageo has agreed to "release Mallya from his personal obligation to indemnify" certain entities against their liabilities. These include liability of Diageo Holdings Netherlands BV, a Diageo group company, under its previous guarantee to Standard Chartered in respect of a USD 135 million loan facility of Watson Limited (a company affiliated with Mallya) from Standard Chartered. "In May 2015, the borrowings under this facility matured and went into default. Following extensions, the guarantee was called by Standard Chartered on January 29, 2016. Diageo settled the guarantee with Standard Chartered at that point and fully provided for the USD 135 million principal amount outstanding under the facility in its results for the six month period ended December 31, 2015. (Express Photo)
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Vijay Mallya and Diageo separation fee: "In aggregate, Diageo paid Standard Chartered approximately USD 141 million under this guarantee, including the USD 135 million principal amount, as well as payments of default interest and various fees and expenses. Watson remains liable for all amounts paid pursuant to the guarantee, while Diageo firm is entitled to the benefit of the security package underlying the facility and the security providers have undertaken to take all necessary actions in that regard. Another liability is of Diageo Finance plc against its liability under its previous guarantee to Standard Chartered of 30 million British pound of borrowings made by United Breweries Overseas Limited (a subsidiary of UB Holdings Ltd) from Standard Chartered. The borrowings went into default, and the guarantee was called in May 2015. (Express Photo)
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Vijay Mallya and Diageo separation fee: "Whilst Diageo continues to have the benefit of counter-indemnification from UBOL, it does not believe that is likely to result in meaningful recovery. This guarantee was entered into by Diageo Finance in April 2012 several months prior to the execution of definitive agreements in respect of the original USL transaction with UBHL. "As part of the arrangements agreed at that time, Diageo was granted pre-emption rights over certain shares in USL that were pledged to a third party by UBHL and Kingfisher Finvest India Limited," Diageo said. (Express Photo)
US announces mandatory visa Integrity fee on all non-immigrant visas
