United Spirits to buy 54.69 pc stake in PDL for Rs 73.95 cr

The company has entered into a share purchase agreement with the existing promoters of alcohol manufacturer PDL to buy 73.22 lakh shares, representing a 54.69 per cent stake in the company, United Spirits said in a filing to the Bombay Stock Exchange.

United Spirits will buy the PDL shares at a price of Rs 101 apiece, translating into a premium of over 40 per cent above the current market price.

In accordance with SEBI guidelines, the company will make an open offer to acquire an additional 20 per cent stake in PDL, the filing added.

Following the acquisition, United Spirit's in-house primary spirit distillation capacity will be enhanced up to 22.5 per cent of its requirement.

Meanwhile, United Breweries has also approved the merger of Millenium Alcobev Breweries and its subsidiary companies into itself in order to create a fully integrated brewing entity.

Millenium Alcobev Breweries is a joint venture between UBL and Dutch brewing company Heineken.

Reacting to the development, shares of United Breweries Ltd shot up by 2.1 per cent and were being quoted at Rs 442.40 in early trade on the Bombay Stock Exchange today, while PDL zoomed 5 per cent to hit a one-month high of Rs 72.50.