India’s largest spirits maker, United Spirits (USL), majority owned by UK’s Diageo Plc, has hastened the process of selling 13 residential properties and mandated a leading banker to re-evaluate these assets, a person with direct knowledge of the development said. According to the agreement between Diageo and Vijay Mallya, United Spirits’ former chairman, the controversial businessman has the right of first refusal over these properties. Mallya has the option of buying three palatial bungalows in Goa, Mumbai and Delhi at a 10% discount to what is offered by the highest bidder. While making this announcement last month, senior USL executives had said they expected the transaction to be completed by the second half of the next financial year. The liquor company is now trying to fasttrack the process. According to a person familiar with the development, the company believes Mallya will be less than enthusiastic about most of these properties as these are located in India and there is a danger that his lenders may seek to attach them. Hence, USL may not have to sell the three prime properties at a discount to Mallya, even though he is supposed to be sentimentally attached to Kingfisher Villa in Goa and Kingfisher House in Mumbai, and might try to retain them. “The proceeds from the sale of the properties will be used to retire debt and fund growth,” a person familiar with USL’s strategy said.
Source: Economic TimesIn bid to reduce debt, USL puts plan to sell properties on fast track.
Industry: Chemical and Fertiliser 2016-03-11
