Diageo announced its deal with United Spirits last month

Diageo announced its deal with United Spirits last month

United Spirits shareholders have approved the US$384.58m allotment of new shares to Diageo as the UK company prepares for a majority stake in the Indian spirits firm.

The 14.53m shares, valued at INR1,440 ($26.43) each, equal 10% of the share capital of United Spirits, Diageo said today (14 December). The allotment is conditional on issues including competition approval or clearance in India and elsewhere, Diageo said.

Last month, Diageo and United Spirits announced their INR111.7bn (US$2.05bn) deal, which will see Diageo take an eventual 53.4% stake in the Indian company. The deal is expected to complete by March. 

It brought to an end a long period of media speculation over the deal, which had previously collapsed in 2009.