Diageo Weighs Options for Guinness: Sale or Spin-off
(Reuters) -Diageo, the world's top spirits maker, is exploring a potential spin-off or sale of beer brand Guinness and is reviewing its stake in LVMH's drinks unit, Moet Hennessy, Bloomberg News reported on Friday, citing people familiar with the matter.
The London-listed company could look to deepen its ownership in the Moet Hennessy venture, or exit altogether, the report said, adding that if Diageo wanted to sell the stake, LVMH has an obligation to buy it, although at a 20% discount to its fair value, as per their agreement.
Guinness would likely be valued at above $10 billion, Bloomberg reported, citing the sources.
Diageo did not immediately respond to a request for comment; LVMH declined to comment.
(Reporting by Aby Jose Koilparambil and Yadarisa Shabong in Bengaluru; Editing by Anil D'Silva)
