The Securities and Exchange Board of India (SEBI) has finally cleared the open offer application of global liquor giant Diageo Plc to acquire additional 26 percent stake in United Spirits (USL) for Rs 11,448.91 crore.
It is the second open offer made by Diageo to gain majority control in India's number one liquor firm.
As part of the deal to buy 53.4 per cent stake in Vijay Mallya-led UB group's USL, Diageo has made a Rs 11,448.91 crore open offer for purchase of 26 per cent stake in the company from non-promoter shareholders.
The open offer — that was made last month — has been now cleared by the market regulator SEBI, according to a public notification.
It issued final observations, necessary for the offer and the deal as a whole to go through, on May 21.
Accordingly, the global liquor giant would pay Rs 3,030 per share of USL, which is more than double the price of Rs 1,440 per share it offered in the previous bid last year.
The offer for 3,77,85,214 USL shares, being made through Relay BV, a wholly owned indirect subsidiary of Diageo, is another attempt by the company to increase its stake beyond 50 percent in the flagship company of the UB Group.