Mallya’s United Spirits to buy majority stake in Pioneer Distilleries for Rs74 crore
14 Sep 2010
United Spirits Limited (USL), India's largest spirits company, today said that it will buy 54.7 per cent stake in the Rs80-crore turnover alcohol manufacturing company Pioneer Distilleries (PDL) at Rs101 a share.
United Spirits, part of billionaire Vijay Mallya's United Breweries Group, the world's second-largest spirits company, has agreed to buy PDL's promoters stake of 54.69 per cent representing 73.22 lakh shares for Rs101 a share, a premium of a 45 per cent to PDL's yesterday closing price of Rs72.50 on the Bombay Stock Exchange (BSE).
The deal is valued at approximately Rs74 crore ($16 million).
In a filing with the BSE today, USL said that in accordance with SEBI takeover norms, it will make an open offer to acquire an additional 26,77,640 equity shares or 20 per cent stake at Rs10 each in PDL.
With this acquisition, USL's in-house primary spirit distillation capacity will enhance to 22.5 per cent of its requirement and provide further supply side security.
Hyderabad, Andhra Pradesh-based PDL is an alcohol manufacturing company and has its factory at Dharmabad in Nanded district of Maharashtra.