Lukewarm response to Diageo's open offer to buy USL shares

UK liquor maker Diageo's open offer to buy 3.8 crore shares constituting 26 per cent of the total equity of United Spirits (USL), from public shareholders failed as it managed to acquire 58,668 shares at the offer price of Rs 1,440 per share, according to a filing with the Bombay Stock Exchange (BSE) on Wednesday by JM Financial Institutional Securities, who managed the offer.

In all, 64,169 shares were tendered by public shareholders, out of which 5,501 were rejected for technical reasons. 

The offer opened on April 10, 2013 and closed on April 26 and was expected to receive a lukewarm response as the offer price was far below the market price of USL share.

The open offer was part of the takeover announced in November last year whereby Diageo was to acquire 53.4 per cent stake in USL, through a combination of stake sale by promoters (17.4 per cent) and preferential allotment (10 per cent) of shares constituting 27.4 per cent, followed by acquisition via public offer route. The total deal was valued then at approximately Rs 11,166 crore.

USL shares closed at Rs 2,303.75 on Wednesday on the BSE.

Heineken UK buys 3.21% stake in UB
United Breweries (UB) said on Wednesday that global liquor maker Heineken NV's UK arm has acquired 3.21 per cent amounting to 84.89 lakh shares equity in the company pursuant to the scheme of amalgamation of Scottish & Newcastle India Pvt Ltd (SNIPL) with UB approved by the high courts of Bombay and Karnataka.

The amalgamation came into effect from April 18 after which SNIPL, which was holding the 84.89 lakh shares, ceased to be a shareholder of UB.