Diageos offer will launch next year

Diageo's offer will launch next year

Diageo will make an open offer to United Spirits' public shareholders to acquire its initial 26% stake in the company on 7 January, according to a stock exchange filing. 

JM Financial, which is managing the offer, said that Diageo will look to buy 37.8m shares at an offer price of INR1,440 per share. The cash offer, which closes on 18 January, will total INR54.4bn (US$987m), the filing to the Bombay Stock Exchange yesterday (20 November) said. 

Earlier this month, Diageo and United Spirits announced that they had agreed on the UK-based group taking an eventual 53.4% stake in the Indian spirits firm, for INR111.7bn (US$2.05bn). The deal remains subject to regulatory approval, but is expected to complete by March next year. 

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