 "Vijay Mallya")
Diageo-controlled United Spirits Ltd (USL) has sold French winery Bouvet Ladubay to an undisclosed buyer as part of its restructuring exercise.
USL has valued the sale of the premium wine brand through its subsidiary, Asian Opportunities and Investments (AOIL), at Rs 8.86 crore.
In 2006, USL Chairman Vijay Mallya had bought the French winery, located in the Loire Valle, for €15 million (Rs 108.16 crore) to market high quality wines in India. USL was importing wines from Bouvet Ladubay, founded in 1851, in both bottled and bulk formats. A Diageo spokesperson declined comment on the sale value or the buyer.
USL had invested $15 million (Rs 98.62 crore) to increase production to nearly eight million bottles, as the Indian firm looked at business opportunities for the sparkling wine brand in India, China and Russia.
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Diageo, which has cleaned the books of USL, after an inquiry found fund diversion to other United Breweries companies, including Kingfisher Airlines, is on a drive to sell non-core assets and reduce debts.
In July, it sold shares of United Breweries Ltd, to Heineken for Rs 872 crore, helping the Dutch beverage firm to increase its stake in the Indian company to 42.1 per cent.
“This divestment is the part of process of monetising certain non-core assets of the company in ordinary course of the company's business," USL said in a statement in July.
In a statement on Monday, USL said it had reduced its debt by Rs 1,324 crore mainly driven by share divestment of UBL. Debt on books is less than Rs 4,000 crore from around Rs 5,000 crore six months ago.
