INDIA: United Spirits in $350m share rights issue
United Spirits said today (23 October) that its board of directors has approved the issue of almost 17.7m shares under a qualified institutional placement.
The group, which controls more than two thirds of India's spirits market, is looking to raise $350m as part of its deleveraging strategy.
Last week, a United Spirits spokesperson told just-drinks the firm had opted for a share placement after talks with private equity firms on an equity stake sale broke down.
United Spirits, which recently reported a 52% rise in first quarter net profits, needs to raise funds to help pay down a US$625m loan taken out to fund the group's US$1.18bn buyout of Scotch whisky distiller Whyte & Mackay in 2007.
United Spirits is part of Indian billionaire Vijay Mallya's UB Group.
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