Won’t sell family silver for Kingfisher: Mallya
29 Oct 2012 7:04 AM IST
Liquor baron Vijaya Mallya does not have to do a deal with UK drinks giant Diageo and will not sell prized assets to rescue his grounded Kingfisher airline, he told a news agency during the weekend. Speaking in his office at Force India, the Formula One team he co-owns, the UB Group head poured scorn on media reports that he would be forced to sell stakes in profitable businesses to fund Kingfisher.
‘That is the media perspective of what I am going to do. I am not so sure that I lack commercial acumen to the extent that I would sell a hugely thriving, successful business to take the cash and put it into an airline in an environment such as India,’ Mallya said at the Indian Grand Prix at the Buddh International Circuit south of New Delhi.
‘My group is sufficiently cash-generative to fund the airline as we have done. We have put almost 150 million pounds since April 2012 into the airline. But that has not meant that I have had to sell my family silver to fund the airline.’
Mallya has been talking to Diageo Plc, makers of brands including Johnnie Walker whisky and Smirnoff vodka, about selling a stake in his United Spirits Ltd.
Earlier this weekend he said he was unsure whether or not he would agree terms with the London-listed firm.
‘I do not have to do a deal with Diageo at all,’ said Mallya. ‘I am under no compulsion whatsoever. But having said that, I will do what is good ... for myself, my family wealth and for long-term shareholder value.’
‘I must do that for every business because these are public companies and I owe it to the shareholders and stakeholders in these companies,’ he said.
‘Selling assets to fund the airline? No plans of that nature whatsoever.’
‘That is the media perspective of what I am going to do. I am not so sure that I lack commercial acumen to the extent that I would sell a hugely thriving, successful business to take the cash and put it into an airline in an environment such as India,’ Mallya said at the Indian Grand Prix at the Buddh International Circuit south of New Delhi.
‘My group is sufficiently cash-generative to fund the airline as we have done. We have put almost 150 million pounds since April 2012 into the airline. But that has not meant that I have had to sell my family silver to fund the airline.’
Mallya has been talking to Diageo Plc, makers of brands including Johnnie Walker whisky and Smirnoff vodka, about selling a stake in his United Spirits Ltd.
Earlier this weekend he said he was unsure whether or not he would agree terms with the London-listed firm.
‘I do not have to do a deal with Diageo at all,’ said Mallya. ‘I am under no compulsion whatsoever. But having said that, I will do what is good ... for myself, my family wealth and for long-term shareholder value.’
‘I must do that for every business because these are public companies and I owe it to the shareholders and stakeholders in these companies,’ he said.
‘Selling assets to fund the airline? No plans of that nature whatsoever.’
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