Diageo completes tender offer for 26% of USL
Posted: 3 July 2014 | Diageo | No comments yet
Diageo has accepted the tender of 37,785,214 shares in United Spirits Limited at a price of INR 3,030 per share under the tender offer announced on 15 April 2014…
Diageo, through its wholly-owned subsidiary, Relay B.V., has accepted the tender of 37,785,214 shares in United Spirits Limited (“USL”) at a price of INR 3,030 per share under the tender offer announced on 15 April 2014. The shares tendered and accepted by Diageo are in the process of being transferred to Relay B.V. and represent 26% of USL’s issued share capital. The aggregate consideration for these shares is INR 114,489,198,420 (£1,117,990,248). Diageo’s prior interest in USL was 28.78%, acquired for INR 65,742,163,642 (£726,550,972). Diageo, therefore, will have a total interest of 54.78% in USL acquired for a total consideration of INR 180,231,362,062 (£1,844,541,220). Diageo expects to fully consolidate the results of USL from 2 July 2014.
Details of the tender offer, and certain other matters relevant to Diageo’s holding in USL through Relay B.V., were set out in Diageo’s previous announcement on 15 April 2014 and in the Letter of Offer sent to USL shareholders and dated 27 May 2014, which are available on the website of the Securities and Exchange Board of India.
Ivan Menezes, Chief Executive of Diageo, said:
‘Our announcement today is significant for Diageo. India has now become one of Diageo’s largest markets and will be a major contributor to our growth ambitions. USL is the leading player in the attractive Indian spirits market with great brands, a unique route to consumer and talented people. We can now combine that strong platform with Diageo’s strengths to create a compelling future in India for Diageo, USL and the Indian spirits industry.’