United Spirits selling shares to repay debt: report
13 Oct 2009
United Spirits Limited (USL), the largest spirits company in India and among the top three spirits companies in the world, is expected to sell shares to raise $300-350 million, after failed talks to rise funds from private equity firms.
Vijay Mallya-led United Spirits, which is looking for funds to repay debt, will now sell the shares to institutions, media reports said, adding, the shares will be placed with institutions probably next week.
The company has debts totalling Rs6,500 crore ($1.4 billion), and said it wants to bring this down to at least Rs4,000 crore by March 2010.
Reports also said USL has engaged Citigroup and UBS to arrange the deal.
United Spirits has been in talks with private equity firms such as Blackstone and Kohl berg Craves Roberts & Co as well as investment firm Capital International for raising funds to repay debt.
