Diageo offers to acquire additional 26 % in United Spirits for Rs5,441 crore

Diageo Plc will launch a mandatory share tender offer to buy up to 26 per cent additional stake in United Spirits Ltd, valued at Rs5,441.07 crore, from public shareholders, J M Financial, manager to the offer, said in a filing with the Bombay Stock Exchange (BSE) today.

Relay BV (acquirer) together with Diageo plc will acquire up to 37,785,214 equity shares of the face value of Rs10 each at an offer price of Rs1,440 per share for a total of Rs54,410,708,160 (Rs5,441.07 crore), according to the filing.

United Spirits Ltd (USL), the flagship company of Vijay Mallya's United Breweries (UB) Group, is selling a majority stake to Diageo Plc, the world's largest spirits maker, in a Rs11,165 crore ($2.05 billion) deal.

Diageo, which holds 25 per cent of the world's premium liquor market, is acquiring 53.4-per cent stake in Bangalore-based USL in a two-part deal.

Diageo, which has bought 19.3-stake in United Spirits at Rs1,440 ($26.5) per share from the UB Group, the USL Benefit Trust, Palmer Investment Group Ltd, and UB Sports Management (both subsidiaries of USL) and SWEW Benefit Company (a company established for the benefit of certain USL employees), bought another 10 per cent in the company through preferential allotment of new shares amounting to 10 per cent of the post-issue enlarged share capital of USL.

UB group continues to hold 14.9 per cent stake in USL.