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.