Diageo in talks to acquire stake in Mallya’s United Spirits
25 Sep 2012
Diageo Plc, the world's largest spirits maker, is in talks to acquire a 25 per cent stake in Vijay Mally's United Spirits Ltd, to ramp up its presence in the world's largest whisky market.
UK-based Diageo is looking to initially buy a 15 per cent stake from Mallya's UB Group, which owns about 28 per cent of United Spirits, and another 10 per cent from other shareholders.
But, once Diageo acquires 25 per cent in United Spirits, it would have to make an open offer to acquire up to 51 per cent in United Spirits, as per Securities and Exchange Board of India (SEBI) takeover regulations.
Diageo, however, is reported to be offering Rs1,200-1,300 per share against the Rs1,600 a share that Mallya is looking for, reports said.
Diageo's current offer values the 25 per cent stake in United Spirits at roughly Rs4,250 crore ($793 million).
Reports, meanwhile said Diageo is expected to pick up close to 27 per cent stake in United Spirits.