United Spirits sells 53% stake to Diageo

Shares of the company today closed at Rs 1,359.70 on the BSE, up 1.22 per cent over the previous close.

Further, Diageo will also acquire 19.3 per cent stake in USL at a price of Rs 1,440 per share from the UBHL group, the USL Benefit Trust, Palmer Investment Group Ltd and UB Sports Management (two subsidiaries of USL) and SWEW Benefit Company (a company established for the benefit of certain USL employees).

The company will seek approval from USL shareholders for a preferential allotment to Diageo at a price of Rs 1,440 per share of new shares amounting to 10 per cent of the post-issue enlarged share capital of USL.

It further said it will launch a tender offer to acquire a further 26 per cent stake in USL at a price of Rs 1,440 per share.

"On completion of the share purchases as described above and in the event that the tender offer were fully subscribed, Diageo will hold 53.4 per cent of the enlarged USL share capital at an aggregate cost of Rs 11,166.5 crore," the company said.

Commenting on the acquisition, Diageo Chief Operating Officer Ivan M Menezes said: "India will become Diageo's second biggest market after the US. India has the potential to become the largest market in the long term."

Talking about the initial receivables, Mallya said USL will get Rs 3,300 crore, while Rs 2,400

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