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Rediff News  All News  » Business » Diageo gets 10% stake in United Spirits

Diageo gets 10% stake in United Spirits

May 27, 2013 14:43 IST

DiageoVijay Mallya led-United Spirits Ltd said on Monday its board has approved allottment of around 1.45 crore (14.5 million) shares on a preferential basis to Relay BV, a subsidiary of Diageo Plc, for a total consideration of nearly Rs 2,092 crore (Rs 20.92 billion) as part of the stake sale deal announced last year.

On November 9, 2012 Diageo had announced buying a 53.4 per cent stake in USL for Rs 11,166.5 crore (Rs 111.66 billion) in a multi-structured deal.

The company's board has approved the issue and allotment of 14,532,775 shares of face value of Rs 10 each at a price of Rs 1,440 per share of USL to Relay BV, an indirect wholly-owned subsidiary of Diageo Plc, on a preferential basis, United Spirits Ltd said in a filing to the BSE.

The allotment of shares by USL to Relay BV has been according to the preferential allotment agreement inked by three parties -- USL, Relay BV and Diageo Plc on November 9, 2012,

it said after its board meeting.

Besides preferential allotment, USL shareholders have also tendered 58,668 shares, which have been accepted by Relay BV in the open offer, the company said. The open offer began on April 10 and closed on April 26.

"As of May 27, 2013, these shares are in the process of being transferred to Relay BV and immediately subsequent to the transfer of the tendered shares, Relay BV will hold 1,45,91,443 shares in the company constituting 10.04 per cent of its post issue paid up share capital," it added.

In a separate filing, USL said its board has approved the appointment of Gilbert Ghostine, nominee of Relay B V, as an additional director on the company's board with effect from Monday.

Shares of USL were trading at Rs 2,517.35 on the BSE, down 2.03 per cent from its previous close.

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