United Spirits Limited (USL), India's leading beverage alcohol company and a subsidiary of global leader Diageo pic, has executed a share purchase agreement (SPA) 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. As a result, FSWLwill cease to be a subsidiary of USL.
Explaining the rationale, Sanjeev Churiwala, Executive Director & Chief Financial Officer, Diageo India said, "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."
This move towards disinvestment of FSWL is in line with USL's strategy to successfully continue to monetise its non-core assets, including subsidiaries.
Shares of UNITED SPIRITS LTD. was last trading in BSE at Rs.595 as compared to the previous close of Rs. 603.8. The total number of shares traded during the day was 52778 in over 1099 trades.
The stock hit an intraday high of Rs. 605.05 and intraday low of 592.15. The net turnover during the day was Rs. 31539021.