Diageo Acquires Additional 10% Stake In USL

Diageo, which last year agreed to acquire control of India’s United Spirits Ltd. (USL), formally took an additional 10% stake in the Indian spirits giant yesterday. Diageo has also appointed its Asia-Pacific head, Gilbert Ghostine, to USL’s board of directors. In a filing to the Bombay Stock Exchange, USL said that it has approved the sale of around 14.5 million shares at INR1,440 (US$25.73) per share to Relay, a Diageo subsidiary, via a perferential allotment agreement. Last November, Diageo agreed to purchase a 27.4% stake in USL—India’s dominant spirits marketer—prompting the mandatory offer for another 26% and control of the company. Diageo was attempting to acuire the additional 26% through an open offer which closed April 26. However, that offer netted the drinks giant just an additional 0.4%, a stock exchange filing revealed. With yesterday’s purchase, though, the London-based drinks giant has taken a big step in its aim to take control of USL.

Tagged : Diageo, India, United Spirits

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