United Spirits sells Four Seasons Wines business for Rs31.86 crore
15 Jan 2019
United Spirits Limited (USL), India’s leading beverage alcohol company and a subsidiary of global leader Diageo plc, is selling its entire stake in subsidiary, Four Seasons Wines (FSWL), in a deal worth Rs31.86 crore.
USL today announced the signing of an agreement for the sale of its 100 per cent stake in its wholly-owned subsidiary, Four Seasons Wines (FSWL), along with the brands.
In a regulatory filing with the Bombay Stock Exchange, the company said it has executed a share purchase agreement for the sale of its entire equity share capital in its wholly owned subsidiary Four Seasons Wines Limited (FSWL) as well as associated brands to Grover Zampa Vineyards Limited and Quintela Assets Limited.
“This deal brings us a step closer to the structural rationalisation and simplification of our India business. The FSWL wine 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,” Sanjeev Churiwala, executive director and chief financial officer, Diageo India, said.
This move towards disinvestment of FSWL is in line with USL’s strategy to successfully continue to monetise its non-core assets, including subsidiaries.
“As a result, FSWL will cease to be a subsidiary of USL” it added.