No link between Diageo-USL deal and KFA: Mallya
Vijay Mallya on Friday said the Diageo-United Spirits deal has no implications for his cash-strapped Kingfisher Airlines, as both are independent businesses
“We have multiple businesses and each business operates independent of each other. There is no cross contamination. There never has been, there never will be,” Mallya told reporters over the phone from London.
Spiking speculation that the deal with Diageo would help refunding of Kingfisher, Mallya said he would address the financial issues of Kingfisher Airlines separately and that he did not want to mix the Diageo-United Spirits deal with that of his airline. “I have now done what I think is best for my spirits business and, of course, we will also address the needs of Kingfisher Airlines,” said Mallya.
Mallya was speaking after the world’s biggest spirits group, Britain-based Diageo Plc agreed to buy a controlling 53.4 per cent stake in the liquor baron’s United Spirits in a Rs 11,166.5 crore ($2 billion) deal. There were speculations that the funds generated out of the deal may be used to revive the cash-strapped airline. The airline has a total debt of Rs 7,000 crore from a consortium of banks.