Diageo takes 53.4% stake in United Spirits for $2.1 bn
“I have not sold the family silver; I have only embellished it,” Mallya told reporters on a conference call after the deal was announced. “The seeds of this partnership were sown six years ago and I am delighted to say we are equally proud that it has come to fruition,” he said.
Both parties, in talks for a long time now, said on Friday that the deal would be structured into two phases. In the first phase, Diageo, which makes some of the finest scotch whisky brands like Johnnie Walker and Smirnoff Vodka, will acquire a 27.4% stake in USL for R5,725 crore at R1,440 per share.
Of the 27.4%, 19.3% will be acquired directly from United Breweries Holding Ltd (UBHL) and certain USL subsidiaries and group trusts. The balance will come through a preferential allotment of new shares by USL shareholders to Diageo at R1,440 per share, amounting to 10% of the post-issue enlarged share capital of USL.
Once the share purchase is completed, Diageo will make the mandatory open offer for
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