The drinks giant Diageo said yesterday that it will receive a final cash payment of US$273m for the sale of the Pillsbury food business to General Mills.

Under terms of the October 2001 agreement Diageo got contingent value rights (CVR) worth up to US$395m, depending on the average market price of General Mills common shares for the 20 trading days preceding April 30, 2003, and the number of General Mills shares Diageo continued to hold as of that date. 

General Mills will make its US$273m cash payment by wire transfer to Diageo no later than May 1, 2003.

The final payment amount reflects an average General Mills stock price for the 20 days measured of US$45.55 per share. Diageo will receive the difference between this average price and US$49.00, or US$3.45 per share, multiplied by Diageo's current holding of 79 million General Mills shares.