Diageo gets more time for United Spirits shares open offer from Sebi
While granting its approval to the request, the Securities and Exchange Board of India (Sebi) on its part has said that UK-based Diageo will have to pay an interest of 10 per cent per annum for the period of delay to the public shareholders tendering their shares in the open offer.
The revised schedule would be announced in due course after all the regulatory approvals, Diageo's manager for the open offer, JM Financial, said in a notice to shareholders.
On January 31, Sebi had cleared an open offer by Diageo for purchase of 26 per cent stake in USL, which is part of a USD 2 billion deal involving UK-based company acquiring a majority stake in the Vijay Mallya-led UB group firm.
However, the deal is yet to be cleared by fair trade regulator CCI.
As per Sebi's letter dated January 31, the letters of offer needed to be dispatched to public shareholders within seven days and the share tendering period was supposed to begin within next five days, that is no later than February 18. Subsequently, the payment to all shareholders was required to be completed by March 18.
However, JM Financial, which has been appointed as manager to offer by Diageo, requested Sebi that the tendering period should be allowed to commence within 12 days of receipt of all applicable statutory approvals.
Sebi has accepted the request
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