INDIA: Diageo details United Spirits MTO uptake
Diageo will buy 17.4% of United Spirits from India's UB Group
Upon announcing its plan last year to buy 27.4% of UB Group's United Spirits division, Diageo triggered an MTO that could have upped its stake to 53.4%. The offer, which ran from 10 April to 26 April, was priced at the same level as the two-part purchase of the 27.4% stake, at INR1,440 per share.
Speaking to just-drinks today (15 May), however, a spokesperson for Diageo said that only 58,668 shares were tendered, representing 0.4% of USL's shareholding.
“The shareholder agreement and board governance structure which formed part of the transaction announcement made on 9 November 2012, give us effective control at a minimum 25.1% share ownership, which would be obtained through the share purchase agreement and the preferential allotment,” the spokesperson noted.
Both parts of Diageo's initial purchase are still in progress, the spokesperson noted.
Although Diageo will only own just over a quarter of United Spirits, the UK-based firm will still hold control of the company's operations.
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