 "Diageo's open offer for United Spirits to start on April 10")
Diageo ‘s open offer to acquire majority stake in Vijay Mallya promoted United Spirits Limited (USL) will start on 10 April. The open offer will end on 26 April. Today Diageo informed the exchanges that it has received all statutory approvals for open offer.
Price of Rs 1,440 per share has been fixed for equity shares to be purchased during open offer.
Earlier Diageo had requested the Securities and Exchange Board of India (Sebi) to. allow it to launch an open offer for purchase of shares in USL after receipt of all regulatory approvals.
Sebi had granted permission to UK-based Diageo on the condition that it will have to pay an interest of 10% per annum for the period of delay to the public shareholders tendering their shares in the open offer.
Today JM Financial on behalf of Diageo informed exchanges that it has got all statutory approvals and open. Price Company will also pay interest of 10% to the shareholders from the period of 19 March to the actual date of payment as directed by Sebi.
The offer price would be paid together with interest computed at the rate of 10 per cent per annum on the offer price from March 19, 2013 till the date of actual payment to all the public shareholders who successfully tender their equity shares in the offer, it added.
Shares of United Spirits on BSE were trading at Rs 1,769 apiece, down over 3 per cent in a weak Mumbai market.
Diageo Plc had earlier said it would launch its over Rs 5,441-crore open offer to acquire 26 per cent stake United Spirits between January 7, 2013 and January 18, 2013.
However, the delay in getting CCI (Competition Commission of India) nod had made it approach market regulator Sebi requesting it to allow making the offer only after getting all the requisite regulatory approvals.
While granting its approval to the request, the Securities and Exchange Board of India (Sebi) on its part has said that Diageo will have to pay an interest of 10 per cent per annum for the period of delay to the public shareholders tendering their shares in the open offer.
In a letter dated January 31, 2013 Sebi had said the letters of offer needed to be dispatched to public shareholders within seven days and the share tendering period was supposed to begin within next five days, that is no later than February 18. Subsequently, the payment to all shareholders was required to be completed by March 18.
However, JM Financial requested Sebi that the tendering period should be allowed to commence within 12 days of receipt of all applicable statutory approvals.
Sebi accepted the request with a condition of additional interest payment for the delay and Diageo would announce the revised schedule in due course.
CCI had given its nod to the deal in February this year.
In November last year, in one of the biggest stake sales by an Indian firm to a foreign company, UK-based Diageo agreed to buy 53.4 per cent stake in United Spirits for Rs 11,166.5 crore in a multi-structured deal.
Price of Rs 1,440 per share has been fixed for equity shares to be purchased during open offer.
Earlier Diageo had requested the Securities and Exchange Board of India (Sebi) to. allow it to launch an open offer for purchase of shares in USL after receipt of all regulatory approvals.
Sebi had granted permission to UK-based Diageo on the condition that it will have to pay an interest of 10% per annum for the period of delay to the public shareholders tendering their shares in the open offer.
Today JM Financial on behalf of Diageo informed exchanges that it has got all statutory approvals and open. Price Company will also pay interest of 10% to the shareholders from the period of 19 March to the actual date of payment as directed by Sebi.
The offer price would be paid together with interest computed at the rate of 10 per cent per annum on the offer price from March 19, 2013 till the date of actual payment to all the public shareholders who successfully tender their equity shares in the offer, it added.
Shares of United Spirits on BSE were trading at Rs 1,769 apiece, down over 3 per cent in a weak Mumbai market.
Diageo Plc had earlier said it would launch its over Rs 5,441-crore open offer to acquire 26 per cent stake United Spirits between January 7, 2013 and January 18, 2013.
However, the delay in getting CCI (Competition Commission of India) nod had made it approach market regulator Sebi requesting it to allow making the offer only after getting all the requisite regulatory approvals.
While granting its approval to the request, the Securities and Exchange Board of India (Sebi) on its part has said that Diageo will have to pay an interest of 10 per cent per annum for the period of delay to the public shareholders tendering their shares in the open offer.
In a letter dated January 31, 2013 Sebi had said the letters of offer needed to be dispatched to public shareholders within seven days and the share tendering period was supposed to begin within next five days, that is no later than February 18. Subsequently, the payment to all shareholders was required to be completed by March 18.
However, JM Financial requested Sebi that the tendering period should be allowed to commence within 12 days of receipt of all applicable statutory approvals.
Sebi accepted the request with a condition of additional interest payment for the delay and Diageo would announce the revised schedule in due course.
CCI had given its nod to the deal in February this year.
In November last year, in one of the biggest stake sales by an Indian firm to a foreign company, UK-based Diageo agreed to buy 53.4 per cent stake in United Spirits for Rs 11,166.5 crore in a multi-structured deal.