INDIA: United Spirits delays reporting full-year results
The Diageo-controlled group is holding off from reporting its results while the issues are resolved
In a statement to the Bombay Stock Exchange yesterday (17 June), United Spirits said it is aiming to complete its enquiries about the issues as “expeditiously as practicable”. It is the third time the company has issued a statement about its delayed accounts. Last month, it blamed having to factor in the impact of the proposed sale of its Scotch whisky business, Whyte & Mackay.
Yesterday, United Spirits said it is making enquiries about “certain balances” it is owed by distributors, contract bottlers and “other third parties”, which total INR590 crore (US$97.7m).
The firm also said it is awaiting “certain information” about a INR1,351.26 crore loan it gave to United Breweries (Holdings) Limited, the holding company of Vijay Mallya's UB Group.
Diageo effectively took control of United Spirits last July and is currently attempting to raise its stake in the firm to 54.78%.
United Spirits reported its last full-year results in mid-May last year.
An unnamed analyst told Indian business newspaper Mint: “It clearly looks like Diageo is cleaning up USL’s books. If the open offer wasn’t in place, the stock would’ve gone down sharply by now.”
Diageo has agreed a deal to sell United Spirits' Whyte & Mackay business to the Philippines' brandy producer Emperador Inc for GBP430m (US$729m) to satisfy competition concerns in the UK whisky market.
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