British liquor maker Diageo Plc is set to acquire a majority stake in Vijay Mallya-controlled United Spirits Ltd (USL) that could involve Mallya ceding control over one of his most prized assets in a complex deal that is likely to fetch him about $1 billion (Rs 5,300 crore).
The two companies are likely to sign the term sheet, a non-binding deal, as early as Friday, sources said. The spokespersons of UB and Diageo Plc in India did not wish to comment.
It was not known if Mallya will use the funds raised by selling his stake in USL to infuse capital into Kingfisher Airlines that has been grounded since October. Mallya holds 27.8% stake in the company.
USL is likely to command a price of Rs 1,500 — a premium of nearly 12% over Thursday’s BSE closing of Rs 1,343.25.