In pact with United Spirits to settle litigations: ABD
Quotes

In pact with United Spirits to settle litigations: ABD

Last Updated: Tuesday, October 09, 2012, 22:24
 
 Comment 0
 
In pact with United Spirits to settle litigations: ABD
Mumbai: Kishore Chhabria-led Allied Blenders & Distillers on Tuesday said it has reached an agreement with Vijay Mallya-controlled United Spirits to sort out all litigations between them, ending two decades of intense legal wrangling and public spats.

The settlement involves Allied Blenders & Distillers (ABD), the flagship company of Chhabria, paying a one-time settlement fee of Rs 8 crore to United Spirits, ABD executive vice-chairman and chief executive Deepak Roy said here.

As to when the payment would be made to the Mallya company, Roy said, "as soon as the courts agree to our settlement."

The multiple cases pending in the Delhi and Calcutta high courts relate to the ownership of the Officers Choice whisky brand, which is the flagship brand of ABD now, and which had in July became the world's largest whisky brand, overtaking UB's McDowell's.

"Chhabria-controlled ABD and Vijay Mallya-controlled United Spirits reached an agreement to settle out of court all pending litigations," a statement from the Chhabria group said here today.

Calls to UB Group president and group chief financial officer Ravi Nedugandi remained unanswered.

When asked about the impact of the settlement, Roy, who owns 5 percent in ABD, said, "though there never had been any threat to our brand, this would help us focus fully on growing our business."

With the withdrawal of these litigations, it brings to an end 20-year old dispute between the Chhabria group and erstwhile Shaw Wallace Group, which is now part of Mallya's United Spirits, ABD said.

When asked whether smoking peace with Mallya would see ABD entering the capital markets soon, Roy said, "although the settlement removes the ban on us from entering the capital markets, we are not hard-pressed for money now. But over time we will surely be going public."

Roy had earlier said that ABD was planning to raise Rs 500 crore from markets.

PTI



First Published: Tuesday, October 09, 2012, 22:24


Comments


comments powered by Disqus
India`s top ten billionaires
India`s top ten billionaires
Pradhan Mantri Jan Dhan Yojana - In Pics
Pradhan Mantri Jan Dhan Yojana - In Pics
Apple Smartwatch unveiled
Apple Smartwatch unveiled
Apple iPhone 6, iPhone 6 plus
Apple iPhone 6, iPhone 6 plus
Samsung Galaxy Tab 4 Nook
Samsung Galaxy Tab 4 Nook

Web Wrap
Contact Us : Privacy Policy : Legal Disclaimer
Copyright © Zee Media Corporation Ltd. All rights reserved