Diageo made the announcement after market hours on Thursday, 4 July 2013.
Meanwhile, the S&P BSE Sensex was up 178.82 points, or 0.92%, to 19,589.66.
On BSE, 1.78 lakh shares were traded in the counter as against an average daily volume of 3.42 lakh shares in the past one quarter.
The stock hit a high of Rs 2,625.95 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 2,572.65 so far during the day. The stock had hit a 52-week low of Rs 697.45 on 30 July 2012.
The stock had outperformed the market over the past one month till 4 July 2013, rising 1.55% compared with the Sensex's 0.69% fall. The scrip had also outperformed the market in past one quarter, rising 40.15% as against Sensex's 4.87% rise.
The large-cap company has an equity capital of Rs 145.33 crore. Face value per share is Rs 10.
The world's largest spirits maker Diageo Plc on Thursday, 4 July 2013, said it has completed the acquisition of a further 14.98% stake in United Spirits. The consideration was Rs 1440 per share, Diageo said in a statement.
Diageo acquired shares from United Breweries (Holdings) (UBHL), KFinvest (a subsidiary of UBHL), Palmer Investment Group and UB Sports Management Overseas (two subsidiaries of USL) and SWEW Benefit Company (a company established for the benefit of certain USL employees).
Shares owned by the USL Benefit Trust, which were part of the original transaction announced on 9 November 2012 and which represent 2.38% of the enlarged issued share capital of USL, were not part of the sale and purchase announced on Thursday. If the release of all security interests over these shares is obtained they will be purchased separately at a later stage, Diageo said.
Diageo said it is the major shareholder in USL after the completion of transaction. Last year, Diageo had announced that it would pick up 53.4% stake in USL in a multi-structured deal. Instead, it now has 25.02% stake in USL for a total consideration of Rs 5235.85 crore.
As per an agreement reached between Diageo and the UB group in November 2012, Diageo agreed to acquire a 27.4% stake in United Spirits -- partly by acquiring shares directly from the promoter entities of the United Breweries group and partly by way of subscribing to a preferential share issue of United Spirits. The agreement triggered a mandatory open offer from Diageo to acquire additional 26% shares in United Spirits as per the Securities & Exchange Board of India's takeover norms.
On 27 May 2013, Diageo subscribed for a preferential allotment of new shares in USL amounting to 10% of the post-issue enlarged share capital at a total consideration of Rs 2092.71 crore.
Separately, Diageo acquired 58,668 additional USL shares in the tender offer for a total consideration of Rs 857.78 crore. Diageo therefore now holds 3.63 crore shares representing 25.02% of the enlarged USL share capital at an aggregate cost of Rs 5235.85 crore.
With completion of the share purchase agreement, the shareholders' agreement between Diageo, United Breweries (Holdings) and KFinvest is now effective. Diageo's 25.02% shareholding in USL, together with the voting and other governance arrangements agreed with the UBHL group, including Dr Vijay Mallya's continued role as Chairman of USL, will give Diageo control and enable Diageo to fully reflect the results of USL in its consolidated accounts, which it expects to do from 1 January 2014. Prior to this, Diageo will equity account its shareholding in USL.
Ivan Menezes, Chief Executive of Diageo, said: "USL's strong market-leading position combined with Diageo's strength and capabilities opens an exciting and important new chapter for Diageo in the attractive Indian spirits market. Since we received approval for this transaction we have been getting ready for closing and integration. Having completed the share purchase, we will now begin the work to identify and capture the significant growth opportunities within this attractive market."
"Through this acquisition we have transformed Diageo's position in India, a market which is one of the biggest growth opportunities in our industry. India will become one of Diageo's largest markets and with its increasing number of middle class consumers looking for premium and prestige local spirits brands as income levels rise it will also become a major contributor to our growth ambitions."
United Spirits' net profit jumped 459.4% to Rs 56 crore on 14% growth in total income to Rs 2141.32 crore in Q4 March 2013 over Q4 March 2012.
United Spirits has twenty-one liquor brands in its portfolio that sell more than a million cases each year, of which five brands each sell more than 10 million cases annually.
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