United Spirits Limited (USL), aiming to monetise its non-core assets, has entered into a definitive agreement for sale of its entire shareholding in its wholly-owned subsidiary, Tern Distilleries Private Limited, to Sri Balaji Impex (SNG) Pte. Ltd., Singapore. The sale is for a consideration of ₹30 crore.
“Upon completion of the sale, Tern Distilleries will cease to be a subsidiary of the Company,” the company said in a regulatory filing to exchanges.
The purchaser, Sri Balaji Impex (SNG) Pte Ltd, Singapore, is not a promoter or part of the promoter group of USL and is not a related party of USL and the sale does not constitute a related party transaction.
United Spirits posts Q1 net loss of ₹215 crore
Non-operative company
USL is expected to complete sale/disposal of Tern Distilleries within 30 days from October 14, the date of signing the agreement.
For the financial year ended March 2020, Tern Distilleries was a non-operative company and consequently did not have any turnover or operating revenue. It had an interest income of ₹0.67 lakh and a net worth of approximately ₹1,342 lakh representing 0.36 per cent of USL’s consolidated net-worth.
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.