Diageo to launch United Spirits tender offer on Jan 7
Nov 20 2012 , New Delhi
Earlier this month, Diageo agreed to buy a majority stake in United Spirits, controlled by Indian businessman Vijay Mallya, for $2.1 billion, fuelling a push by the world's biggest spirits group into fast-growing markets.
The tender offer, which is part of the two-tranche deal that will give Diageo a 53.4 per cent stake in India's largest spirits company, will close on January 18, JM Financial said in a notice to the exchange on Tuesday.
Shares in United Spirits ended up 0.6 per cent at Rs 1,762, higher than Diageo's offer of Rs 1,440 a share to minority shareholders. The sharp jump in the stock has clouded the outcome of the tendering process, analysts said.
United Spirits shares have risen more than 30 per cent since the announcement of the deal on November 9.