25.02.2016 16:38:02
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Diageo Says Vijay Mallya Agreed To Resign As Chairman Of United Spirits
(RTTNews) - Diageo Group Thursday said United Spirits Ltd. will appoint Mahendra Kumar Sharma, its independent non-executive director, as chairman as Vijay Mallya has resigned as chairman and non-executive director. Diageo is the majority shareholder of USL with a 54.78 percent holding.
Diageo said it has signed a non-compete, non-interference, and standstill arrangement with Mallya and thus its prior agreement nullified. As per the new agreement, it will pay $75 million in total and over the next five years and the payment will be charged to exceptional items. $40 million will be paid immediately and the rest will be in installments.
Further, Diageo said Smirnoff's sponsorship of Force India Formula 1 team, partly owned by Mallya will continue that would cost $15 million per season.
Ivan Menezes, chief executive of Diageo, said, "The agreement announced today is in the best interests of both Diageo and USL and allows USL to build on its strong platform in one of the biggest spirits markets in the world."
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Diageo plc | 25,81 | -1,41% |
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