Mallya quits USL in $75 mn deal with Diageo
Bengaluru/London: Liquor
baron Vijay Mallya on Thursday, 25th February 2016, resigned as
chairman and non-executive director of United Spirits Ltd (USL) as part of a
$75 million (Rs.516 crore) financial deal with its majority holder and global
liquor major Diageo plc of Britain.
"We have entered into an agreement
with Vijay Mallya under which he has resigned from his position as chairman and
non-executive director of United Spirits Ltd and from the boards of other USL
group companies," the London-based Diageo said in a filing to the London
Stock Exchange.
Soon after Mallya's resignation, the
USL board appointed non-executive director Mahendra Kumar Sharma as the
company's new chairman.
As part of the agreement, Mallya will
be paid $75 million over a five-year period, including $40 million (Rs.275
crore) in the first year and the balance over four years.
With this resignation, Dr Mallya no longer has any authority or responsibility within the USL group said Abanti Sankaranarayanan of United Spirits.
There is a 5-year global non compete, non-solicitation
arrangement: United Spirits Ltd on Vijay Mallya's resignation, she said.
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