The deal with first announced last November

The deal with first announced last November

Diageo has maintained that its bid to buy a majority stake in United Spirits remains on course to complete by the end of Q1, despite being hit by a delay in acquiring public shares in the group.

In a regulatory filing today (7 January), JM Financial Institutional Securities, which is handling the open offer, said that the initial schedule has been “revised”. This is due to “final observations” still to come from India’s Securities and Exchange Board, it said.

The offer to acquire 26% of public shares was due to be held between today and 18 January, JM Financial said in November. Diageo is looking to buy 37.8m shares at an offer price of INR1,440 per share. The cash offer will total INR54.4bn (US$987m). 

“The revised schedule of activities will be intimated in due course,” the filing added. 

In a statement, a Diageo spokesperson told just-drinks: "We continue to work towards our timeline, which would see the transaction completing in Q1 2013." 

The companies first announced in November that they had agreed a deal for Diageo to take an overall 53.4% stake in United Spirits for INR111.7bn (US$2.05bn).