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Shareholders of United Spirits on Friday approved the management’s proposals to manufacture and distribute products of Diageo subsidiaries.
The company will also sign an agreement with Diageo India for sharing expenses incurred on advertising, marketing and promotion activities for liquor brands owned by various Diageo subsidiaries.
The United Spirits management secured 76.33 per cent of the votes polled at an extraordinary general meeting on Friday, marginally more than the 75 per cent needed to pass the resolution. There were 139 minority shareholders present at Friday’s meeting and two from the promoter group.
The polling included e-voting. The special resolution received 11.31 million votes in favour and 3.5 million votes against.
The promoters were not entitled to vote, but United Breweries (Holdings) Limited, which owns 2.90 per cent of United Spirits, and Kingfisher Finvest, which owns 1.14 per cent, voted in favour. The scrutiniser, however, invalidated their votes.
United Spirits’ shareholders had rejected the same resolution during a postal ballot in November. The company’s management had received 70.3 per cent votes in favour then.
United Spirits can now enter into agreements with Diageo subsidiaries. The company expects to earn an annual turnover of around Rs 700 crore and profit of Rs 70 crore through licensing and distribution agreements with Diageo North America and Diageo Scotland.
United Spirits now earns a six per cent sales promotion commission, which translates into Rs 42 crore. “By entering into the agreements, the company will be in a position to gain a diverse, global product portfolio, additional sales revenue, and improve its standing in the domestic market by virtue of leveraging the Diageo brand and know-how,” United Spirits said.
The company will also sign an agreement with Diageo India for sharing expenses incurred on advertising, marketing and promotion activities for liquor brands owned by various Diageo subsidiaries.
The United Spirits management secured 76.33 per cent of the votes polled at an extraordinary general meeting on Friday, marginally more than the 75 per cent needed to pass the resolution. There were 139 minority shareholders present at Friday’s meeting and two from the promoter group.
The polling included e-voting. The special resolution received 11.31 million votes in favour and 3.5 million votes against.
The promoters were not entitled to vote, but United Breweries (Holdings) Limited, which owns 2.90 per cent of United Spirits, and Kingfisher Finvest, which owns 1.14 per cent, voted in favour. The scrutiniser, however, invalidated their votes.
United Spirits’ shareholders had rejected the same resolution during a postal ballot in November. The company’s management had received 70.3 per cent votes in favour then.
United Spirits can now enter into agreements with Diageo subsidiaries. The company expects to earn an annual turnover of around Rs 700 crore and profit of Rs 70 crore through licensing and distribution agreements with Diageo North America and Diageo Scotland.
United Spirits now earns a six per cent sales promotion commission, which translates into Rs 42 crore. “By entering into the agreements, the company will be in a position to gain a diverse, global product portfolio, additional sales revenue, and improve its standing in the domestic market by virtue of leveraging the Diageo brand and know-how,” United Spirits said.
