Diageo buys USL shares worth Rs 866 cr; ups stake to 29 pc

Tags: Companies
UK-based global liquor giant Diageo today acquired an additional 2.40 per cent stake in Vijay Mallya-led UB group's United Spirits for an estimated Rs 866 crore through open market transaction.

On the other hand, foreign fund house Oppenheimer Funds, an existing shareholder, sold 36.42 lakh shares (representing 2.5 per cent stake) of United Spirits in the open market for Rs 901.13 crore through bulk deals.

The shares have been acquired by Diageo through its group entity Relay BV, which today purchased 35 lakh United Spirits shares, amounting to 2.40 per cent holding in the company.

At the end of last month, Relay BV held 26.37 per cent stake in United Spirits, which has now risen to nearly 29 per cent.

The shares were acquired today at an average price of Rs 2,474.45 apiece, valuing the transaction at Rs 866.06 crore.

Diageo had announced in 2012 that it intends to pick up to 53.4 per cent stake in United Spirits in a multi-structured deal for a total of Rs 11,166.5 crore. However, it could pick only 25.02 per cent stake for a total consideration of Rs 5,235.85 crore due to tepid response to its open offer.

United Spirits shares rose 1.39 per cent to end the day at Rs 2,474.45 apiece on the BSE.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Regional parties that brought diversity to Indian democracy are at a dead end

    In the two decades, which began in 1989, when the paradigm of coalition politics came to dominate central governments, it would have sounded far-fetch

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Tushar Gandhi

Sustainable model for rural sanitation

Prime minister Narendra Modi has promised to build a toilet ...

Kuruvilla Pandikattu SJ

What we can learn from agnosticism

As an agnostic, the American writer David Breeden is aware ...

Shona Adhikari

When women to birds become a painter’s muses

This week the focus is on renowned artist Amitabha Banerjee, ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture