INDIA: Diageo takes initial 10% of United Spirits, exec joins board

By | 28 May 2013

The deal was first announced last November

The deal was first announced last November

Diageo's bid for full control of United Spirits has received a boost after the Indian group's board approved the allocation of a 10% stake to the UK firm. 

In a filing to the Bombay Stock  Exchange yesterday (27 May), United Spirits said that it has approved the sale of around 14.5m shares at INR1,440 (US$25.73) per share to Relay, a Diageo subsidiary, through a perferential allotment agreement. Earlier this month, Diageo confirmed it had only managed to acquire 0.4% of the group through a mandatory tender offer

The UK group has agreed to take a 27.4% stake in United Spirits, but was hoping to up its stake in the firm to 53.4% through the MTO. 

Meanwhile, Gilbert Ghostine, Diageo's Asia-Pacific president, has joined the board of United Spirits, with his appointment taking effect yesterday. 

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, HR – personnel, Spirits

Companies: Diageo, United Spirits

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INDIA: Diageo takes initial 10% of United Spirits, exec joins board

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