India’s United Breweries Group is reportedly seeking a buyer for its residual stake in United Spirits (USL), worth Rs22bn, to repay its loans.

UB Group owner Vijay Mallya is currently engaged in an altercation with United Spirits’ British owner Diageo over Rs21bn lent by USL to several UB group companies. Diageo owns 55% stake in the company.

Several Indian banks had lent Rs70bn to the group’s non-operational Mallya-owned Kingfisher Airlines, reported Business Standard.

The agreement will see Mallya sell his entire stake of around 5% in USL to Diageo at a premium to the current price and following the stake sale he will also be required to step down from the board of his company, reported The Economic Times.

However, Vijay Mallya spokesperson was quoted by the publication as saying: "We have no immediate plans to sell our stake in USL as we believe it is an excellent portfolio to retain."

United Spirits was acquired by UK-based liquor giant Diageo in 2012 in a $2.1bn transaction including the open offer. An additional 26% stake was purchased by Diageo in a second open offer.

In September, it was reported that Diageo may stand to lose more than 10 million shares of USL worth over Rs32.35bn ($487m) at current market price, in case of an unfavorable ruling on the several petitions filed against United Breweries Holdings Ltd (UBHL), from which it had acquired these shares.