New Delhi, Jan 15 (PTI) Diageo-owned liquor firm United Spirits (USL) Tuesday said it has executed a share purchase agreement for sale of its entire equity share capital in its subsidiary Four Seasons Wines as well as associated brands to Grover Zampa Vineyards and Quintela Assets.
The company has entered an agreement for the sale of all the equity shares held by the company constituting 100 per cent of the paid up equity share capital of its wholly-owned subsidiary, Four Seasons Wines (FSWL), along with the brands, “the company said in a regulatory filing.
USL said this move towards disinvestment of Four Seasons Wines is in line with USL’s strategy to successfully continue to monetise its non-core assets, including subsidiaries.
The company said total consideration received for this sale is Rs 31.86 crore.
“As a result, FSWL will cease to be a subsidiary of USL” it added.
Explaining the rationale, Diageo India Executive Director and Chief Financial Officer Sanjeev Churiwala said, “This deal brings us a step closer to the structural rationalisation and simplification of our India business.
“The Four Seasons Wines business is a niche but a small part of the overall Diageo India portfolio and the sale will enable us to focus on our premiumisation strategy and grow our core spirits business in India.”
This is published unedited from the PTI feed.