Sources have revealed that United Spirits Vijay Mallya is in London with Senior Executives and could be ready to hand over a controlling stake to Diageo.
India’s IBN Live reports “As far as management control is concerned, Vijay Mallya and a couple of United Spirits shareholders will continue to remain on the board. But, the majority will remain with Diageo. It is also believed that Vijay Mallya may continue as the chairman of the board, but the roles of CEO, CFO etc will be taken over by new executives of Diageo.”
“Although, there are a lot of contours to be figured out yet, the deal is to be valued between Rs 1400-1500 crore. More importantly, the UB Group has agreed to give up controlling stake in the company and is also likely to give up the management control. Around 27 per cent of UB Group’s promoter holding will be given to Diageo, report sources.”
You could read IBN Live’s news here http://ibnlive.in.com/news/diageo-to-get-controlling-stake-in-vijay-mallyas-united-spirits-sources/300643-7.html