Vijay Mallya is planning to make a 10% preferential allotment in his flagship company, United Spirits (USL), to the former, says media reports.
According to reports, preferential allotment of 10% will happen before May 26, for which Diageo will be paying Rs 20.94bn.
Diageo’s move to acquire a further 17.4% stake for Rs 3,632 crore will depend on what the judge at the Karnataka high court (HC) will decide, after hearing winding-up petitions on UB Holdings, report said.
As part of the agreement between Diageo and Mallya in early November 2012, the former was to get 12.8% stake from UBH’s holdings in USL.
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