UB in final stages of talks for stake sale in USL to Diageo

Liquor baron Vijay Mallya's UB Group is in final stages of talks for selling up to 14.9 per cent stake in group company United Spirits Ltd (USL) to Diageo, the global drinks leader.

Mallya and his senior team comprising UB Group CFO Ravi Nedungadi, USL president and managing director Vijay Rekhi and USL CFO P A Murali will be meeting Diageo counterparts on Wednesday at New York for the stake sale.

"The deal is inching towards finalisation," a source said but the official spokesperson declined to comment. 

"Diageo can confirm that it is reviewing a possible collaboration with United Spirits Ltd. However, there is no certainty at this stage that these discussions will result in
a transaction," Diageo spokesperson said.

Meanwhile Mallya told NDTV: "yes, I don't deny a meeting with Diageo in New York on Wednesday. There are several other interested players also," adding any strategic player would see USL as a route to market.

Mallya also said the group is open to selling up to 14.9 per cent of a total of 17 per cent of treasury stocks in USL to strategic partners.

"When they approached us the share price of USL was Rs 1,800. Why they should not be interested in the current value", he added.

Shares of the United Spirits were trading at Rs 430.80, down 9.92 per cent on the Bombay Stock Exchange.