Mumbai: Vijay Mallya-led United Spirits on Tuesday said that Shaw Wallace will sell its entire 10.27% stake in the company to retire a part of debt.
United Spirits Ltd (USL) in a filing to the Bombay Stock Exchange said, “Due to corporate consideration, Shaw Wallace & Company intends to sell 1,02,82,553 shares, or 10.27% stake, in the open market through the stock exchanges.”
Calculated on the basis of Monday’s closing price, the deal value comes to Rs943.37 crore.
“The proceeds will be utilised to reduce the loan of the company’s wholly-owned subsidiary,” the filing said.
In 2005, Vijay Mallya-led United Breweries acquired Shaw Wallace & Company, following which it was merged with the group’s flagship company USL last year.
As of March quarter, Shaw Wallace & Company held 10.27% stake and UB Holdings had 23.84% interest in USL.
United Spirits has over 150 products in its portfolio including brands Black Dog, Signature, Royal Challenge and Romanov.
Shares of USL were trading at Rs883, down 3.75% in morning trade on BSE.