Sells all its stakes in United Spirits Nepal to Rajesh Bir Singh Tuladhar
KATHMANDU, Aug 29: The Department of Industry (DoI) has permitted India's United Spirits Ltd to divest its 82.46 percent shares in United Spirits Nepal Pvt Ltd to existing shareholder Rajesh Bir Singh Tuladhar.
As per the share purchase agreement documents submitted at DoI, per unit price has been set at Rs 5,042.
Tuladhar is paying Rs 341.4 million for 67,716 units of shares held by United Spirits Nepal. He already owns 8,580 units of shares in the company which has plant in Morang.
India's liquor giant is exiting Nepal as part of its dispose of non-core assets after its parent company changed its priorities, people privy to the issue told Republica.
British liquor giant Diageo Plc holds majority shares in United Spirits - one of the largest spirits producing company. United Spirits had applied for share transfer in May. “But it couldn't move ahead as United Spirits did not send its representative to complete the transfer,” a DoI official, who is not authorized to talk to media, said.
Bipin Rajbhandari, chief of foreign investment division of DoI, said United Spirits will have to pay 25 percent capital gains tax (CGT) and clear all liabilities to the government to complete share transfer. Assessment of CGT is yet to be determined by Large Taxpayers' Office.
United Spirits Nepal is producing and selling different alcohol products of United Spirits under the license issued by Government of Nepal. Its products include Signature, Antiquity, McDowell's No 1 and Blue Riband, among others.
According to an announcement made in January, the Nepalese firm will continue to produce and sell products using United Spirits trademark.
Other share holders in the company are Laxmi Devi Tuladhar, Rita Singh Tuladhar and GN Manandhar and they own 670, 3,750 and 1,400 units of shares, respectively.