Mumbai, Oct 13 - India's United Spirits, is set to sell new shares worth about $300-350 million to institutions after efforts to sell a stake to private equity firms and Diageo failed.
The world's third largest spirits maker by volume is set to place the shares with institutions as early as this week, three sources with direct knowledge of the deal said. United Spirits will primarily use the funds to cut debt, said the sources who were not authorised to speak to the media.
United Spirits was not immediately available for comment on Tuesday.
Citigroup and UBS are among arrangers for the deal, which follows several months of talks with private equity firms Blackstone, Kohlberg Kravis Roberts & Co and Capital International.
United Spirits has a debt of 65 billion rupees ($1.4 billion) and has said it aims to cut this to 40 billion rupees by the end of March 2010.