Struggling entrepreneur Vijay Mallya's UB Group has confirmed that the company is once again in talks with UK-based spirit group Diageo over stake sale.Mallya's United Spirits Ltd. revealed the ongoing talks over the possible transactions in its recent filing to the Bombay Stock Exchange (BSE).

In the filing, the Indian company said, "United Spirits and Diageo Plc confirm that the UK-based company is in discussion with it and United Breweries Holdings in respect of possible transactions to acquire an interest in the liquor firm."

Diageo, the world's biggest spirit group, has also confirmed the talks in a filing to the London Stock Exchange (LSE).

It is the second time when Diageo, the manufacturer of Smirnoff and Johnnie Walker, has shown interest in acquiring a stake in United Spirits. The two companies had pursued talks over stake sale in 2009 but the talks were unsuccessful.

Potential deal with Diageo is expected to keep United Spirits Ltd. afloat. United Spirits Ltd. is currently burdened with a debt pile of more than Rs 8,000 crore.

Following the announcement of the talks, shares in United Breweries gained 19.97 per cent to Rs 132.45; while United Spirits stock climbed 8.89 per cent to close at Rs 1,147.70 a share on the BSE on Tuesday.