Press Esc to close
Monday 25 May 2015
News updated at 2:08 AM IST
Weather
Max: 31.5°C
Min : 22.8°C
In Bengaluru
Sunny day

Diageo says will not raise United Spirits offer price

Bangalore, April 6, 2013, DHNS:

Open offer to be held from April 10-26

British liquor giant Diageo Plc which had announced in February this year that it would raise its stake in Vijay Mallya-led United Spirits Ltd (USL), said on Friday that it would not raise its price to acquire upto 26 per cent stake in the Bangalore-based liquor group via a mandatory open offer.

The open offer is slated to be launched from April 10 to 26. Diageo said that it is sticking to its earlier offer price of Rs 1,440 per share made in November last year, in keeping with SEBI regulations and provisions for delays in carrying out the offer. The company said in a filing to the Bombay Stock Exchange that the offer price would be paid together with interest computed at the rate of 10 per cent per annum as stipulated by SEBI on the offer price from March 19, 2013.

The company said that the Letter of Offer dated March 28, 2013 has been dispatched to all shareholders who are eligible to tender their equity shares in the offer and whose names appear on the register of members of the target company as of the Identified date being March 25, 2013. The acquisition is proposed to be funded through existing cash resources as well as debt.

The USL share which surged to a 52-week high of Rs 2,149 a share in the months following the announcement, fell 3.75 per cent to close down 68 points to Rs 1,755.50 on the BSE on Friday. The company’s market capitalisation currently stands at Rs 22,961 crore with the stock’s earnings per share at Rs 21.01 and a consolidated price-to-earnings ratio of 66.45.

Diageo, United Breweries (Holdings) Limited (UBHL) and USL had agreed in November last year that Diageo would acquire a 27.4 per cent stake in USL, for a consideration of 5,725 crore. An additional stake of at least 26 per cent was planned through an open offer triggered under SEBI rules, taking Diageo’s eventual shareholding in United Spirits to 53.4 per cent for a total consideration of Rs 11,167 crore.


Go to Top

Photo Gallery
Mumbai India and CSK Cricketers with IPL Trophy during photo session ahead of their IPL 2015...

Mumbai India and CSK Cricketers with IPL Trophy during photo session ahead of their IPL 2015...

Organically grown fruits and vegetables at ‘Pilikula Vasanthothsava’ at Pilikula in Mangaluru...

Organically grown fruits and vegetables at ‘Pilikula Vasanthothsava’ at Pilikula in Mangaluru...

Dr.Rajkumar's Statue Unveil at Gayathri (Rajaji) Nagar...

Dr.Rajkumar's Statue Unveil at Gayathri (Rajaji) Nagar...

An Indian man pours water on his face during a hot summer day in Hyderabad...

An Indian man pours water on his face during a hot summer day in Hyderabad...

A picture of late Pope's John Paul II is seen inside the Force India's Formula One car...

A picture of late Pope's John Paul II is seen inside the Force India's Formula One car...

Children seen carrying sand in cycle cart which collected from the road at Mysuru...

Children seen carrying sand in cycle cart which collected from the road at Mysuru...

A man shows a pair of turtles in Thane, Mumbai ...

A man shows a pair of turtles in Thane, Mumbai ...

A salesman helps a customer to select gold bangles at a jewelry showroom in Mumbai...

A salesman helps a customer to select gold bangles at a jewelry showroom in Mumbai...

A pair of Barbet bird sits on a tree in New Delhi on Sunday...

A pair of Barbet bird sits on a tree in New Delhi on Sunday...

People enjoying in a water park to beat the heat on a hot day in Bhopal on Sunday...

People enjoying in a water park to beat the heat on a hot day in Bhopal on Sunday...

Copyright 2014, The Printers (Mysore) Private Ltd., 75, M.G Road, Post Box 5331, Bengaluru - 560001
Tel: +91 (80) 25880000 Fax No. +91 (80) 25880523