Diageo launches Rs 11,449 cr open offer

The world's largest liquor maker Diageo Plc today made an open offer worth Rs 11,448.91 crore to acquire an additional 26 per cent stake in United Spirits Ltd.

The company has launched a tender offer to the public shareholders of USL to acquire up to 37,785,214 shares in USL, which represents 26 per cent of USL's fully diluted issued share capital as on today, Diageo Plc said in a statement.

"The tender offer will be at a price of Rs 3,030 per share and the total consideration for the increased stake (assuming take-up in full at the announced price) will be Rs 114,489,198,420," it added.

Diageo will fund the consideration payable under the tender offer through existing cash resources and debt.

"On completion of the tender offer (assuming full take-up), Relay will hold 54.78 per cent of USL's issued share capital and will have paid approximately Rs 180,231,362,062 for its total shareholding in USL," Diageo said.

The liquor firm has launched the offer through Relay BV, its wholly-owned indirect subsidiary.

Relay currently holds 28.78 per cent of the issued share capital of USL, acquired for a total investment of Rs 65,742,163,642 (Rs 6,574.2 crore).

In the event the tender offer is subscribed in full, the total consideration payable at the announced price for Diageo's increased stake will represent a 38x multiple of USL's EBITDA on a consolidated basis for the year ended March 31, 2013, the company said.


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