United Spirits jumped 11.36% to Rs 2,847.50 at 12:09 IST on BSE after Diageo plc, the world's largest alcoholic beverages company, announced an open offer to the public shareholders of the company.
The company made the announcement before trading hours today, 15 April 2014.
Meanwhile, the BSE Sensex was down 194.08 points, or 0.86%, to 22,434.88.
On BSE, so far 2.04 lakh shares were traded in the counter, compared with an average volume of 1.44 lakh shares in the past one quarter.
The stock hit a high of Rs 2,940.55 so far during the day, which is also a record high for the counter. The stock hit a low of Rs 2,812.70 so far during the day. The stock hit a 52-week low of Rs 1,838 on 12 April 2013.
The stock had outperformed the market over the past one month till 11 April 2014, rising 3.89% compared with the Sensex's 3.68% rise. The scrip had, however, underperformed the market in past one quarter, falling 8.35% as against Sensex's 9.01% rise.
The large-cap company has an equity capital of Rs 145.33 crore. Face value per share is Rs 10.
Diageo Plc, the world's largest distiller, has launched a second round of open offer to the shareholders of United Spirits (USL). The offer is for acquiring up to 3.77 crore fully paid up equity shares of face value of Rs 10 each, constituting 26% of the total fully diluted voting equity share capital of USL. The tender offer will be at a price of Rs 3,030 per share and the total consideration for the increased stake (assuming take-up in full at the announced price) will be Rs 11448.92 crore. Diageo has launched the tender offer through Relay BV (Relay), a wholly-owned indirect subsidiary of Diageo.
Diageo already owns 28.78% of the company through Relay BV and intends to take its holding in USL to 54.78% through this open offer.
On 31 January 2014, Relay BV bought 35 lakh shares of USL at Rs 2,474.45 each on the BSE, whereas Oppenheimer Funds Inc sold 36.42 lakh USL shares at Rs 2,474.25 each via block deals.
Last year, Diageo had announced that it would pick up 53.4% stake in USL in a multi-structured deal.
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.
Diageo's mandatory open offer to acquire an additional 26% in United Spirits at an offer price of Rs 1,440 per share closed on 26 April 2013. The company accepted bids for 58,668 shares as against proposed open offer size of 3.77 crore shares.
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.
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