United Spirits ‘to sell Nepal subsidiary’

Troubled Indian drinks group United Spirits Ltd (USL) is to sell its entire stake in its United Spirits Nepal Pvt Ltd subsidiary to existing shareholder Rajesh Bir Singh Tuladhar, according to reports.

McDowell’s leads the Scotch portfolio at troubled company United Spirits Limited.

USL’s 82.46% stake is to be sold at Nepalese Rs5,042 per share (about US$48), representing a total value of Nepalese Rs34.14 crore (about US$3.2 million).

The move, which is subject to regulatory approval, comes as part of the Diageo-controlled group’s wider strategy to sell off non-core assets, reports dealstreetasia.com.

Tuladhar currently holds an 11.54% stake in the Nepali company, but is not considered a promoter of the business. As such, the deal will not be treated as a related-party transaction.

“Following the completion of this sale, the company will hold no shares in United Spirits Nepal and it will cease to be a subsidiary of the company,” A statement reportedly released by USL reads.

“The company will continue to have a licensing arrangement with United Spirits Nepal pursuant to which products bearing the company’s brand names will continue to be manufactured, marketed and sold in Nepal.”

The Spirits Business has approached USL for comment.

Earlier this month, USL asked shareholders to approve a resolution declaring the company ‘sick’ after its peak net-worth fell 86% over the past four years. The move followed news that controversial chairman Vijay Mallya had retained his position despite an earlier shareholder vote of no confidence.