KKR, Diageo may buy piece of United Spirits: report
19 May 2009
Private equity giant Kohlberg Kravis Roberts and Diageo may buy a chunk of equity in the Vijay Mallya-led United Sprits, India's largest liquor marketer and owner of Scottish distiller Whyte & Mackay.
According to a newspaper report citing a person close to the development, the two firms could buy 10 per cent and 14.99 per cent in the company respectively, The Economic Times reported.
Two simultaneous deals are being worked out in such a manner that they do not attract the provisions of the Securities and Exchange Board of India's (SEBI) takeover code.
As per the talks which are going on, KKR could sell its shares to Diageo at the time of exit.
The proposed investment structure will also possibly help Diageo tackle competition laws in EU, the report added.