INDIA: Fresh reports break of Diageo, United Spirits talks
The reports, which surfaced yet again earlier today (25 April), cite an unnamed person familiar with the situation as suggesting the two are in negotiations “to structure a deal that would arm (United Spirits' owner Vijay) Mallya with enough cash to revoke pledges on shares of United Spirits”. Investment bank JM Financial has been recruited to work out the details of an agreement, the Economic Times claimed in its report.
However, in the same report, a spokesperson for JM Financial was quoted saying: “We are not involved with Diageo in any structured deal to help Vijay Mallya pay off debts in Kingfisher Airlines and therefore your query is factually incorrect and speculative.”
A spokesperson for Diageo told just-drinks today: “As a matter of policy, we do not comment on market rumour and speculation.”
Meanwhile, a spokesperson for United Spirits confirmed to just-drinks that the company is "not in any discussion with JM Financial".
However, he added: “Diageo and ourselves are in constant touch with each other exploring joint business opportunities in this rapidly evolving market.”
When asked specifically about a possible stake sale, the spokesperson said: "There is no question of selling our stakes in our core businesses to invest further or to repay debt in any business including Kingfisher Airlines.
"We have other opportunities to access the necessary funding."
This third - and penultimate - part of October's management briefing, looking at the logistics landscape, shines the light on Asia Pacific....
The reports out of India late last week that the chairman of The UB Group has been hit with a warrant for his arrest will have been greeted with raised eyebrows by many in our industry - not least, th...
As macroeconomic volatility, the mature versus emerging market narrative, the craft revolution coming of age and shifting demographics all radically reshape the alcoholic drinks battleground, innovati...
- Cuba-US Normalisation: Bacardi, Pernod Winners?
- Sustainability in Wine - Part I
- Review of the Year 2014 - Part IV: Spirits
- Coca-Cola to get boost from Monster in China
- CCE shows faith in Coca-Cola Life with full launch
- Diageo welcomes verdict on Crown Royal "confusion"
- Bacardi, Pernod Ricard welcome US-Cuba deal
- United Spirits bids for distribution deal approval
- SWA eyes London boost with new office
- Diageo ups focus on China with Mortlach roll-out
- Global vodka insights - market forecasts, product innovation and consumer trends research
- Global Scotch whisky insights - market forecasts, product innovation and consumer trends research
- The IWSR Forecast Report - 2014-2019 Global Review
- just-drinks on-trend: Craft beer - fortunes and future
- Global market review of non-Scotch whiskies – forecasts to 2018