India: Diageo confident of retaining majority stake in United Spirits Limited even if it loses in court

Diageo Plc, a British multinational alcoholic beverages company, has expressed confidence of retaining a majority stake in United Spirits Limited (USL) even if it loses the legal battle pertaining to the purchase of shares of USL from United Breweries Holdings Ltd (UBHL), Business Insider reported on January 30.

Last year, the Supreme Court had ordered status quo to be maintained in the case. The next hearing is scheduled to take place on April 21. Moreover, the Karnataka High Court, which had admitted six petitions against UBHL, will hear the case on February 26.

"...Averse results for Diageo in the proceedings referred to above could, absent leave or relief in other proceedings, ultimately result in Diageo losing title to the 10,141,437 USL shares acquired from UBHL. Diageo believes it would remain in control of USL and be able to consolidate USL as a subsidiary regardless of the outcome of this litigation," the London-headquartered company said.

"There can be no certainty as to the outcome of the existing or any further related legal proceedings or the timeframe within which they would be concluded," it added.

Diageo had acquired a stake of 14.98% in USL for Rs 3,130 crore in July 2013. On July 2, 2014, it bought more shares and increased its stake to 54.78%.

04 February, 2015