United Spirits stock up nearly 12% on Diageo open offer

PTI Posted online: Tuesday, Apr 15, 2014 at 0000 hrs
Mumbai : Shares of United Spirits Ltd today zoomed nearly 12 per cent after liquor major Diageo Plc made a Rs 11,448.91 crore offer to public shareholders of the company to acquire an additional 26 per cent stake.

USL's stock ended the day 11.58 per cent higher at Rs 2,853.15 on the BSE Sensex. During the day, the stock surged 15 per cent to Rs 2,940.55 -- its 52-week high.

At the NSE Nifty, the scrip ended 11.62 per cent up at Rs 2,854.35.

The company's market value rose by Rs 4,304 crore to Rs 41,464 crore.

The world's largest liquor maker Diageo Plc today made a Rs 11,448.91 crore offer to public shareholders of United Spirits Ltd to acquire an additional 26 per cent stake, its second attempt to gain majority control in India's number one alcoholic beverages firm.

Diageo will pay Rs 3,030 per share of USL, which is more than double the price of Rs 1,440 per share it offered in the previous bid last year.

The offer for 3,77,85,214 USL shares, being made through Relay BV, a wholly owned indirect subsidiary of Diageo, is another attempt by the company to increase its stake beyond 50 per cent in the flagship firm of Vijay Mallya-led UB Group.

If the offer is fully subscribed, Relay will hold 54.78 per cent of USL's issued share capital and will have paid about Rs 18,023.14 crore for its total shareholding in USL, Diageo said in a statement.