Mallya Seeks To Acquire Four USL Properties Via His Nominee
USL to sell four properties to Vijay Mallya’s nominee.
.jpg?rect=0%2C0%2C3418%2C1923&auto=format%2Ccompress&w=200)
Vijay Mallya has nominated a party to acquire four non-core real estate properties from United Spirits Ltd., the company disclosed in a statement to stock exchanges as part of third-quarter earnings.
USL disclosed that it has received call notices from the party nominated by Mallya, indicating his intention to purchase four non-core properties from the company. The company did not disclose the name of the nominated party, nor the details of the properties or their valuation.
As part of the settlement agreement in January 2016, Mallya or a party nominated by him had a limited-period option to purchase up to 13 non-core properties of the company.
Of the 13 properties, the agreement allowed Mallya to acquire three residential properties in Mumbai, Delhi and Goa “at a 10 percent discount to the fair market value as assessed by a reputed independent valuer appointed by USL”, according to the company’s 2016 annual report.
The fair market value and the discounted value applicable to certain select properties… shall not be less than the value of that property adopted or assessed by any authority or state government for the purposes of payment of stamp duty in respect of the transfer of the relevant propertyUSL Annual Report, 2016
The post-discount prices of the three residential properties are expected to be higher than the value assessed by any government body.
UB Group refused to comment, while United Spirits was yet to respond to BloombergQuint’s emailed query.