BANGALORE: The world’s largest spirit maker Diageo PLC has barred liquor baron Vijay Mallya led United Breweries Holdings Limited (UBHL) from appointing independent directors to the board of UBHL’s flagship United Spirits Limited (USL).
Diageo, which makes brands like Johnnie Walker and Smirnoff Vodka, increased their stake in USL with a Rs 11448.91 crore offer for an additional 26 per cent stake. After their latest bid in April, Diageo had earned the right to appoint majority of directors on USL board, it was reported. However, Mallya will continue to serve as non-executive director and Chairman of USL as long as United Breweries holds 1.3 mn shares, the Britain based spirit maker said in a statement on Wednesday.
Mallya may lose his post at USL after public sector lender United Bank of India (UBI) declared him a ‘willful defaulter’. The declaration could mean that the person will be forced to stand down from corporate posts and also not be able to borrow any more from banks.