United Spirits rose 1.52% to Rs 2,521.80 at 11:05 IST on NSE, after the company said that Diageo has acquired an additional 26% stake in the company through tender offer.
Meanwhile, the CNX Nifty was up 10.85 points, or 0.14%, to 7,736
On NSE, so far 7.52 lakh shares were traded in the counter. The stock hit a high of Rs 2,535.35 and a low of Rs 2,484.10 so far during the day.
The large-cap company has an equity capital of Rs 145.33 crore. Face value per share is Rs 10.
United Spirits (USL) after market hours on Wednesday, 2 July 2014, said that Diageo through its wholly-owned subsidiary, Relay B.V., has accepted the tender of 3.77 crore shares in USL, representing 26% stake in USL at a price of Rs 3,030 per share under the tender offer announced on 15 April 2014. The aggregate consideration for these shares is Rs 11448.91 crore. Diageo's prior interest in USL was 28.78%, acquired for Rs 6574.21 crore. Diageo, therefore, will have a total interest of 54.78% in USL acquired for a total consideration of Rs 18023.13 crore.
India has now become one of Diageo's largest markets and will be a major contributor to our growth ambitions. 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, Diageo's Chief Executive Ivan Menezes said in a statement.
More From This Section
United Spirits is yet to announce its financial performance for Q4 and year ended 31 March 2014. United Spirits' net profit declined 19.4% to Rs 64.92 crore on 5.22% growth in total income to Rs 2351.49 crore in Q3 December 2013 over Q3 December 2012.
United Spirits is the largest alcohol beverage company in India, having sold 123.70 million cases in the year ended 31 March 2013.
Powered by Capital Market - Live News