The consideration will be INR 1440 per share and the total consideration would be approximately £660m. Following completion of these agreements, Dr Vijay Mallya will continue in his current role as chairman of USL, and UBHL and Dr Mallya will work with Diageo to build the USL business.
Diageo and Dr Mallya have entered into a memorandum of understanding under which they will form a 50:50 joint venture which will own United National Breweries’ traditional sorghum beer business in South Africa.
Diageo’s investment for its 50% interest in the joint venture is expected to be approximately approximately £25m, subject to adjustment. Diageo and Dr Mallya are also considering the possibility of extending this joint venture in order to maximise opportunities which exist in certain emerging markets in Africa and Asia (excluding India).
Source: Diageo
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