Friday, 20 December 2013

United Spirits Ltd’s share sale to Diageo void: HC

BANGALORE: In a major set back to British drinks giant Diageo, a division bench of the Karnataka high court struck down the sale of 6.9% stake or 10.14 million shares in United Spirits Ltd (USL) by Vijay Mallya's investment arm United Breweries Limited (UBHL) to Diageo earlier this year. 

This ruling comes seven months after a single bench judge of the court allowed UBHL to sell 13.61 million USL shares to Diageo, even while the court was hearing winding up pleas against UBHL that were filed as early as March 2012. 

At present Diageo controls 26.37% stake in USL, which it purchased for over $800 million.

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