Diageo takes control of Mallya's USL

[Daredevil]

Deal clinched: Mallya set to cede control of USL to Diageo

Finally, Vijay Mallya has done the deal.

Diageo is set to buy 53.4 percent stake in United Spirits in a deal worth more than $2 billion, Reuters reported Diageo as saying.

Both the companies are set top make an announcement after the market hours today, said the report.

The shares have been rising on speculation of the deal. United Spirits had risen as much as 6.1 percent. PTI

Shares of United Spirits were trading at Rs 1,355, up 0.9 percent and those of United Breweries Holdings were 2.7 percent up at Rs 134.

The shares have been rising on speculation of the deal. United Spirits had risen as much as 6.1 percent.

A crucial meeting between officials of both the companies is expected to take place today between the two parties to finalise the deal, media had reported.

CNBC-TV18 had earlier reported that Mallya and key employees of his companies were in London on Wednesday, giving finishing touches to the agreement.

Deal clinched: Mallya set to cede control of USL to Diageo | Firstpost

 

[Tolaha]

Vijay Mallya got a nice money minting brewery business empire from his dad. Using this consistent source of revenue, he diverted it into airlines, Formula one, IPL, glitzy cars and all that high society lifestyle. Now the cash cow is being sold for the indulgences!

While Konkanis are great businessmen, VM must be a unique one with his "spendthrift" life!

 

[Tolaha]

An article on Vijay Mallya that looks at him in a different light:

Vijay Mallya's last stand : Selling his crown jewel United Spirits - The Times of India

Excerpts:

Mallya's often described by those close to him as proverbially a man with nine lives. He's been in umpteen scrapes before and come out of it. While the general consensus is that his luck finally ran out, there are others who think by doing this deal with Diageo he's actually doing a smart thing, getting the 10th life perhaps.

K P Balasubramaniam, former chairman of Mysore Breweries (now SAB-Miller India) and an old Mallya friend from Bangalore believes, "It's a smart thing he's done. Diageo is a well run, profitable company. His 15% stake will appreciate in value and he will get good dividends. Same is the case with the beer business (where Heineken is the equal owner)."

A sentiment echoed by Kishore Chhabria with whom he settled long-standing disputes recently. Said he, "The good thing about him is that he continues to be lucky. He would have been gone without this deal, but he has pulled it off. A lot of people might say bechara mar gaya but watch out. His 15% stake will be worth far more in three years than 29% he had. This was a pragmatic deal to do. Good for him and good for the industry." Chhabria, the chairman of Allied Blenders & Distillers, the largest Indian-owned spirits company now, added, "I am sure he will enjoy playing the investor role from now on. People move on like the Singh brothers of Ranbaxy. There's no need to be emotional."

And emotional Mallya has never been about business. He's bought and sold businesses whenever he's seen value. He sold Kissan to Hindustan Lever, after dallying with Nestle a bit. Berger Paints was sold for a huge profit. He offloaded the brilliant portfolio he inherited from his dad - large stakes in Cabdury and Hoechst - saying there were not core to his business.

Nobody also disputes Mallya's generosity, large heartedness to his family and friends. Says a Bangalore corporate chieftain, "He's a very nice guy. Very generous. Never malicious. Unfortunately, a lot of people misuse that. There are lots of people who take advantage of his hospitality, fly in his planes, attend his parties and then snigger behind his back."

His flamboyant lifestyle - close associates say his personal life was never as colourful as made out by the media - the yachts, the planes, the cars, the horses, the girls, the islands, FI and IPL teams, multiple homes - in the end damned him in the public eye.