Diageo Plc, the world’s biggest distiller, is in advanced talks to buy a stake in billionaire Vijay Mallya’s United Spirits (USL), as mentioned in few media reports. However, the deal is expected to value USL around Rs 1,300 a share.
Further, as part of the deal, yet to be finalized, although Diageo may get the right to appoint a majority of United Spirits’s board members including the chairman Mallya, who owns 28 per cent of India’s second-largest maker of alcoholic beverages by market value, is expected to remain the shareholder. Meanwhile, the proceeds of funds raised through stake sale would be utilized for funding the needs of cash strapped Kingfisher Airlines, whose net loss more than doubled to Rs 2,328 crore in 2011-12, from Rs 1,027 crore in the previous year.
