Mallya Quits USL |
Indian business tycoon Vijay Mallya resigned Feb. 25 as chairman and non-executive director of United Spirits Ltd as part of a $75 million deal with its majority holder and global liquor major Diageo plc of Britain. The London-based Diageo said in a filing to the London Stock Exchange and Indian stock exchanges BSE and NSE that they have entered into an agreement with Vijay Mallya under which he has resigned from his position as chairman and non-executive director of United Spirits Ltd and from the boards of other USL group companies. Following Mallya`s resignation, the USL board appointed independent director Mahendra Kumar Sharma as the new chairman, effective Feb. 25. USL will pay Mallya $75 million over a five-year period, including $40 million this year and $35 million over the next four years.The agreement puts in place a five-year global non-compete and non-interference by Mallya, ends Diageo`s prior agreement on his position at the company and puts an end to the uncertainty relating to its governance.The initial payment to Mallya will be charged to exceptional items in the year ending June 30, 2016.Diageo also extended Smirnoff`s sponsorship of the Force India Formula-1 team of which Mallya is team principal and part-owner for the next five seasons. Sponsorship cost will continue to be $15 million per season.
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