United Spirits shares up nearly 3% as Diageo acquires stock

PTI Posted online: Wednesday, Nov 27, 2013 at 0000 hrs
Mumbai : Shares of United Spirits today gained nearly 3 per cent after spirits major Diageo Plc picked up more than 19 lakh shares of the Vijay Mallya-led distiller for over Rs 472 crore.

United Spirits' shares ended the day at Rs 2,650.35, up 2.68 per cent on the BSE. During the day, the stock jumped 3.14 per cent to Rs 2,662.25.

At the NSE, the stock settled 2.58 per cent to close at Rs 2,655.

Diageo Plc, which is in the process of acquiring majority stake in United Spirits, yesterday picked up more than 19 lakh shares of the Indian firm for over Rs 472 crore.

Relay BV, a wholly-owned subsidiary of Diageo, purchased 19,67,940 USL shares. The shares were acquired at Rs 2,400 apiece, valuing the transaction at Rs 472.31 crore.

Last year, Diageo had announced that it would pick up 53.4 per cent stake in USL in a multi-structured deal for a total of Rs 11,166.5 crore.

As part of that deal, 26 per cent shareholding was to be acquired through an open offer.

The Diageo-United Spirits deal has run into regulatory hurdle with the British fair trade watchdog, forcing the spirits maker to offer selling bulk of Whyte & Mackay business.

Diageo sells various popular brands, including Smirnoff Vodka and Johnnie Walker whiskey. USL, which is India's top spirits maker, markets various liquor brands including Signature, Bagpiper, Antiquity and Royal Challenge.