Diageo closer to United Spirits deal, say reports
03 Oct 2012
Global liquor major Diageo is closing in on Vijay Mally's United Spirits with the Indian spirits maker nearing an agreement on the sale of a stake to the UK-based maker of top whisky brand Johnnie Walker and No 1 premium vodka brand Smirnoff, reports quoting sources close to the development said.
The two companies are reported to be near agreement on a price of Rs1,464 a share for USL and a deal is expected this weekend, sources said.
The United Spirits stock, meanwhile, hit a 52-week high of Rs1,309.40 in early trade on the Bombay Stock Exchange today.
A final decision is expected tomorrow while the actual transaction may take up to six months, reports quoted sources as saying.
The United Spirits stock has gained over 140 per cent in a volatile market, despite the company's worsening financials.
Diageo plans to pick up 25 per cent stake in Mallya-controlled United Spirits, which could then trigger an open offer for a majority stake.