Mallya: Diageo agreement ‘secures’ family legacy
Vijay Mallya, the former United Spirits chairman and non-exec director, has released a statement in which he says the agreement reached with parent company Diageo “secures” his “family legacy”.
Mallya says the US$75 million payout from Diageo “recognises” his contribution in “building United Spirits (USL) to what it is today”.
He also states that he plans to spend more time in the UK, a region exempt from his five-year non-compete agreement with Diageo.
The statement in full reads:
Having recently turned 60, I have decided to spend more time in England, closer to my children.
The time has now come for me to move on and end all the publicised allegations and uncertainties about my relationship with Diageo and United Spirits Limited. Accordingly, I am resigning my position with immediate effect.
I am pleased to have been able to agree terms with Diageo and United Spirits Limited. The agreement we have reached secures my family legacy.
I have agreed a mutual release with both Diageo and United Spirits from claims concerning the alleged irregularities disclosed by USL in April 2015. I am now the Founder Emeritus of United Spirits which recognises my contribution in building United Spirits to what it is today and evokes great emotions and a degree of extreme satisfaction having steered United Spirits from a sales volume of just under 3 million cases to over 120 million cases when control was passed to Diageo.
I fondly remember, as a young boy, launching McDowell’s, which is the largest selling brand in the industry. I also recall the challenges and personal sacrifices in the tumultuous acquisition of Shaw Wallace and the Royal Challenge brand. I feel both happy and satisfied that I helped create United Spirits as a clear market leader in the industry which contributed immensely to the local state economies.
On the sporting front, I will now be the Chief Mentor of the Royal Challengers Bangalore. I have been passionate about this team since inception and am determined to do whatever I can to win the IPL trophy. I am glad that my son, Sidhartha, will remain as a Director as he is equally passionate about RCB.
I have also agreed a global (excluding United Kingdom) 5 year non-compete arrangement.
Mallya’s statement comes as Indian news broadcaster DNA reports that Diageo will seek to recover loans workRs 1,337 crore (about US$195 million) from USL division United Breweries Holdings through “dialogue or other legal means”.