United Spirits Ltd. said it executed a share purchase agreement for sale of its entire equity share capital in its subsidiary Four Seasons Wines as well as associated brands to Grover Zampa Vineyards and Quintela Assets.
The Diageo-owned liquor maker has entered an agreement for the sale of all the equity shares held by the company constituting “100 percent of the paid up equity share capital of its wholly-owned subsidiary, Four Seasons Wines, along with the brands”, it said in a regulatory filing.
United Spirits said this move towards disinvestment of Four Seasons Wines is in line with its strategy to successfully continue to monetise its non-core assets, including subsidiaries. The total consideration received for this sale is Rs 31.86 crore, it said, adding “as a result, Four Seasons Wines will cease to be a subsidiary of United Spirits.”
Explaining the rationale, Diageo India Executive Director and Chief Financial Officer Sanjeev Churiwala said, “This deal brings us a step closer to the structural rationalisation and simplification of our India business. The Four Seasons Wines business is a niche but a small part of the overall Diageo India portfolio and the sale will enable us to focus on our premiumisation strategy and grow our core spirits business in India.”
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