Vijay Mallya exits United Spirits Limited; Diageo to pay him $75 mn over 5 years
According to reports, Mallya said he was pleased to reached a mutual release with United Breweries group and Diageo, the owner of United Spirits.
Zee Media Bureau
New Delhi: Liquor baron Vijay Mallya on Thursday resigned as the chairman of United Spirits Limited but will now become the Founder Emeritus of the company.
According to reports, Mally said he was pleased to reached a mutual release with United Breweries group and Diageo, the owner of United Spirits.
Post his resignation, Mallya said he was happy to have created United Spirits as a clear market leader in the industry.
He also said he was pleased to have agree terms with Diageo and UB group.
Meanwhile, Diageo said all disputes with Vijay Mallya ends with his resignation and that the company will not support him in any way with USL or UB group.
Vijay Mallya will have no personal liability to the company, Diageo said.
The company further said it does not support Mallya as the chairman or non-executive director of USL.
However, Vijay Mallya will have the honoury title of Founder Emeritus of the company, said Dieageo.
With Diageo having singed a 5-year non-interference with Mallya, the company will, however, pay him USD 75 million over a period of 5 years.
In April 2015, alleging fund diversion to Kingfisher and other UB group entities, United Spirits' new owner Diageo had asked Vijay Mallya to step down as Chairman and Director of the Indian liquor firm.
Diageo, which has bought controlling stake in United Spirits from UB Group, asked Mallya to step down following "various improprieties and legal violations" were found after a probe it conducted into loans given by USL to various UB Group companies.
However, Mallya had refused to resign and said the inferences and allegations are unjustified and false.