Diageo announces tender offer for up to 26% stake in USL
Advancing with its plan to gain majority control over United Spirits Ltd (USL), Diageo Plc on Tuesday announced its plans to launch a tender offer to buy up to 26 per cent more stake in the Indian distiller.
Diageo already holds 28.8 per cent stake in USL and if the just launched open offer is successful, its stake in the Indian firm will soar to more than 54 per cent.
The tender offer has been priced at Rs 3,030 a share and the total consideration for the soared stake will be Rs 11,448.92 crore. The world's largest distiller will launch the open offer through its wholly-owned indirect subsidiary called Relay BV.
The company said in a statement, said, "On completion of the tender offer (assuming full take-up), Relay will hold 54.78% of USL's issued share capital and will have paid approximately Rs 18,023.14 crore for its total shareholding in USL."
Analysts said the new offer indicates that the distiller made a mistake by not increasing its price in the first open offer that was made in November 2012. The new offer price is more than double of the first open offer of Rs 1,440 a share.
The open offer is scheduled to start on 11th of June and close on 24th of the same month.
Stock in USL traded up 10.52 per cent at Rs 2,826 in early Tuesday morning trade on the Bombay Stock Exchange.