United Spirits to sell stake in its Nepalese subsidiary

New Delhi: Liquor firm United Spirits plans to divest its entire stake in subsidiary United Spirits Nepal Pvt Ltd, to an existing invetsor, for Nepalese Rs 34.14 crore.

"Further to the approval of the Board of Directors...the company has entered into an agreement for the sale of all 67,716 equity shares held by the company in its subsidiary, United Spirits Nepal, to Rajesh Bir Singh Tuladhar at a price of Nepalese Rs 5,042 per share, amounting to a total

consideration of Nepalese Rs 34.14 crore," United Spirits said in a BSE filing.

With the sale of the equity shares, United Spirits aims to dispose of the non-core assets.

These shares constitute 82.46 per cent of the paid up equity share capital of United Spirits Nepal.

"The consideration will be subject to the deduction of applicable taxes in Nepal," the company added.

In the last fiscal, the turnover and net worth of United Spirits Nepal were approximately Rs 64.80 crore and Rs 4.58 crore, respectively.

The transaction is subject to various regulatory approvals and other conditions precedent, upon the fulfilment of which the sale of shares will be completed.

The purchaser, Tuladhar, is an existing shareholder of United Spirits Nepal. He is not a promoter or part of the promoter group of the company.

"Following the completion of this sale, the company will hold no shares in United Spirits Nepal and it will cease to be a subsidiary of the company.

However, United Spirits said it will continue to have a licensing arrangement with United Spirits Nepal pursuant to which products bearing the company's brand names will continue to be manufactured, marketed and sold in Nepal.