INDIA: Diageo offer to United Spirits shareholders "fair" - directors

By | 2 April 2013

The proposed deal was first announced in November

The proposed deal was first announced in November

United Spirits' independent directors have approved Diageo's open offer to the company's shareholders, branding the price “fair and reasonable”. 

In a filing to the Bombay Stock Exchange yesterday (1 April), the unit, which is presently owned by The UB Group, said its directors also believe the offer price of INR1,440 (US$26.45) per share complies with India's Takeover Code. However, the directors said shareholders should “independently evaluate” the offer and make an “informed decision”. 

Diageo's bid to acquire 26% of the public shares in United Spirits has been hit by delays after initially saying the open offer period would start in January. The overall deal, if completed, would see the world's biggest drinks group take a 53.4% controlling stake in the Indian spirits firm. 

Last month, Diageo confirmed that it has had approval from India's Competition Commission for the deal, but said it is still waiting for clearance from the Securities and Exchange Board of India (SEBI), despite media reports claiming that it had been given the green light.

Expert analysis

The Future of the Spirits Market in India, to 2016

Future of the Spirits Market in India, to 2016 is the result of Canadean’s extensive market research covering the Spirits market in India.

Sectors: Emerging markets – BRIC, Mergers & acquisitions, Spirits

Companies: Diageo, United Spirits, The UB Group

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