It’s a deal six years in the making.
However, even after finalising the multi-pronged cross-border Rs 11,165-crore (Rs 111.65 billion) deal in November 2012, Diageo’s wait for acquiring a decent stake in India’s leading whisky maker, United Spirits, seems to be getting longer and longer.
Diageo’s open offer to acquire 26 per cent or close to 38 million shares at Rs 1,440 apiece in United Spirits has, on expected lines, fallen flat.
It is understood that only 65,000 shares were tendered in, given the fact the stock is ruling at Rs 2,077 a share, a premium of around 44 per cent over the offer price.
The open offer closed for subscription on April 26. However, there was no official confirmation on the tendered shares from J M Financial, who is managing the offer on behalf of Diageo.
According to information available, the next step will be the 10 per cent preferential allotment, which the UB Group promoters will be making in favour of Diageo.
This has to be completed within 15 days of the closure of the open offer process (by paying out for the shares tendered), which should close by May 30.
“We do not see any delay in this process... In fact, it will happen much before the deadline,” a senior management official at UB Group told Business Standard.
However, Diageo’s move to acquire shares from UB Holdings, the holding company of UB group, and purchase treasury stock from various Trusts may be delayed, because of the protracted legal proceedings in the Karnataka high court over the winding-up