United Spirits makes open offer for 20 per cent of Pioneer Distilleries
18 Sep 2010
India's largest spirits company United Spirits Ltd (USL), which acquired a 54 per cent stake in Pioneer Distilleries, has made a public offer to acquire another 20 per cent equity in the company.
The acquisition will take United Spirits' holding in the Maharashtra-based distillery to nearly 75 per cent.
The Vijay Mallya-led USL had on Tuesday entered into an agreement to buy a majority stake in Pioneer Distilleries for about Rs74 crore, which will help it raise its distillation capacity.
USL had already acquired 54.7 per cent stake in Pioneer Distilleries, a primary distillation unit.
Ambit Corporate Finance Pvt Ltd, manager to the offer, made this public announcement on behalf of United Spirits Ltd to the equity shareholders of Pioneer Distilleries Ltd, in compliance with the provisions of the takeover regulations of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers Regulations, 1997) and subsequent amendments there to.
United Spirits has offered to acquire 2,677,640 equity shares from the existing shareholders of Pioneer Distilleries, other than the promoters, representing 20 per cent of the voting rights of its equity.