Diageo Announces Offer for United Spirits

Diageo Announces Offer for United Spirits

Diageo Plc is expected to launch Rs 5,441-crore open offer to obtain a supplementary 26% in United Spirits from April 10. UK-based company has announced that the offer will end by April 26. Authorities concerned have announced that JM Financial Institutional Securities Pvt Ltd's offer price will remain at Rs. 1,440 per equity share.

In a filing to the BSE, it has been highlighted that shares of United Spirits on BSE were trading at Rs 1,769. This is three percent lower than the Mumbai market.

Fleshing out the details, Diageo Plc stated that offer price would be paid along with interest calculated at the rate of 10 per cent per annum on the offer price from March 19, 2013. This will be done till the date the public shareholders tender their equity shares in actual payment.

The company added, ".. the manager to the open offer has informed that the acquirer has received all applicable statutory approvals. The Tendering Period shall commence on April 10, 2013 and shall close on April 26, 2013".

Earlier, it was announced by Diageo Plc it would release an offer with over Rs 5,441-crore and it was expected to acquire 26% stake United Spirits between January 7, 2013 and January 18, 2013.

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