Diageo to launch United Spirits tender offer on Jan 7

Written by Reuters | New Delhi | Updated: Nov 21 2012, 05:40am hrs
Diageo Plc will launch a mandatory share tender offer to buy up to 26% additional stake in United Spirits from public shareholders on January 7, the manager to the offer said in a notice to the Bombay Stock Exchange (BSE).

Earlier this month, Diageo agreed to buy a majority stake in United Spirits, controlled by 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 January 18, JM Financial said in a notice to the exchange on Tuesday. Shares of United Spirits ended up 0.6% at R1,762, higher than Diageo's offer of R1,440 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 November 9.