After protracted discussions on whether he will finally sell majority control of United Spirits to Diageo, Vijay Mallya, finally bit the bullet on Friday and decided on a transaction in which Diageo will get to control a significant 53.4 per cent stake in the UB Group flagship United Spirits. In an discussion with the Indian media from London, Mallya detailed how he finally structured the deal. Excerpts:
It is a perception which I do not share. It is not selling family silver, but I am embellishing it. I continue to be the chairman of the company and my promoter led companies will hold 14.9% stake. I have taken this step in the best interest of United Spirits.
I had earlier during 2009 brought in Heineken as an equal shareholder in my beer business - United Breweries and it has since built significant shareholder value. We have come into a significant partnership with Diageo and it is a dream combination. It is a win-win situation for both.
I am delighted about and it is beneficial to the UB Group. If you think I have sold out control in United Spirits
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