The former ‘King Of Good Times’, Dr. Vijay Mallya’s saga took another turn on Thursday when he finally decided to step down as the executive Chairman of Diageo-controlled United Spirits Ltd (USL). In return, he will walk away with a cool $75 Million (Rs. 515 crore) and is apparently settling down in UK to be closer to family or is he actually trying to escape Indian investigation agencies?
Here are 5 Facts About Vijay Mallya’s Settlement With Diageo:
1. Diageo will pay Mallya $75 Million as a settlement, with $40 Million being paid upfront and the balance being vested in equal installments over a period of 5 years. USL will also be selling 13 residential properties over which Mallya has the first option to purchase at market price.
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2. Vijay Mallya’s son Siddharth Mallya will remain on the board of United Spirits Group Company and cannot be removed for a period of atleast two years. USL controls the Royal Challengers Bangalore IPL team.
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3. Diageo has extended Smirnoff’s sponsorship of Force India Formula 1 Racing Team for the next five years at $15 million per season. Mallya is team principal and part-owner of the team.
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4. With Mallya’s resignation, Diageo takes complete management ownership in United Spirits and puts an end to all ties with its past owners. Diageo owns about 55% of USL which has a captive 39% market share of the Indian spirits industry.
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5. Diageo has signed a five year non-compete, non-interference contract with Mallya (except in United Kingdom), which prevents the liquor baron from entering the market in the near future. Mallya will not pursue any claims against Diageo or USL as a part of the deal.
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Check out these 5 hilarious twitter reaction to Vijay Mallya’s great escape from India.
