New Delhi: Diageo Plc will launch a mandatory share tender offer to buy up to 26% additional stake in India’s United Spirits Ltd from public shareholders on 7 January, the manager to the offer said in a notice to BSE.
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% stake in India’s largest spirits company, will close on 18 January, JM Financial said in a notice to the exchange on Tuesday.
Shares in United Spirits ended up 0.6% 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% since the announcement of the deal on 9 November.