Shares of Vijay Mallya promoted UB Group companies mainly United Spirits Limited (USL) and United Breweries (Holdings) have rallied up to 7% on TV channel reports that top officials of USL are expected to meet Diageo today to continue discussing a potential stake sale.
The board of directors of both these companies have schedule to meet tomorrow to consider the un-audited financial results for the three months ended September 30, 2012.
Since September 25, the stock of USL and United Breweries (Holdings) have rallied 28% and 20% respectively after USL and Diageo plc jointly confirm that Diageo plc is in discussion with USL and United Breweries (Holdings) in respect of possible transactions for Diageo plc to acquire an interest in USL.
“Britain's drinks major Diageo is set to pick up a 51% stake in USL for about $2 billion (Rs 10,820 crore). The deal involves the purchase of a portion of Vijay Mallya's stock, the issue of fresh shares and an open offer to buy stock from public shareholders,” according to Mint report dated November 6.
Today, USL has rallied 7% to Rs 1,394 on back of heavy volumes. The stock opened at Rs 1,290 and has seen a combined 4.52 million shares changing hands on the counter so far on both the exchanges.
United Breweries (Holdings), which held 18% stake in USL, has locked in 5% upper circuit at Rs 132 on the NSE. A combined 3.76 million shares have already changed hands on the counter and there are pending buy orders for 272,559 shares at 1303 hours.