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Diageo, the maker of Johnnie Walker whiskey and Tanqueray Gin, currently owns an about 56% stake in United Spirits after slowly building it up over several years.
The company has started talks with investment bankers and consultants on a delisting offer, the CNBC TV-18 report said, citing sources familiar with the matter.
“The management believes that the current market conditions and the pricing of USL is conducive to a delisting and that’s why they are exploring this option,” the CNBC report said, citing a senior executive at the company who did not want to be named.
Diageo India did not immediately respond to a Reuters request for comment.
The company’s move comes nearly a week after miner Vedanta (NYSE:VEDL) Resources Ltd said it was delisting its Indian unit Vedanta Ltd (NS:VDAN), as it seeks to accelerate the simplification of its corporate structure amid the coronavirus pandemic.
Shares of United Spirits were trading flat at 0825 GMT on India’s National Stock Exchange.
UK-based Diageo’s shares were up 1.8% at 2,792 pence on the London Stock Exchange.
