The proposed open offer for an additional 26% stake in United Spirits entails Diageo to purchase about 3.8 crore shares at Rs1,440 per share
Mumbai: The open offer for buying 26% in Vijay Mallya-led United Spirits, which was to start on Monday, has been postponed, pending final approval from market regulator Securities and Exchange Board of India (SEBI), reports PTI.
JM Financial, the manager for the open offer, has said that since the "final observations from SEBI" are awaited, the schedule has been revised.
"... The revised schedule of activities will be intimated in due course," according to a filing made by United Spirits to the BSE.
Global liquor major Diageo Plc is to acquire 26% shareholding in United Spirits through the open offer worth Rs5,441 crore, as part of a deal to buy up to 53.4% stake in the company.
As per the detailed public statement (DPS) issued in November last year, the open offer was to start on 7th January.
Shares of United Spirits declined 1.12% to close at Rs1,915.25 on the BSE.
As per the transaction, announced on 9th November, Diageo is acquiring a 27.4% stake in USL, through a combination of purchase of shares from existing promoters and a preferential allotment of share, for Rs5,725.4 crore.
Any acquisition of 25% or more stake in a listed company triggers a mandatory open offer for purchase of additional 26% stake from the public shareholders and the same needs to be cleared by the market regulator.
The proposed open offer for an additional 26% stake in United Spirits entails purchase of about 3.8 crore shares at a price of Rs1,440 per share, totalling to Rs5,441 crore.
United Spirits, the country's largest spirits company, is part of Vijay Mallya-led UB Group, whose aviation venture Kingfisher Airlines has been going through turbulent times for many months now.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )
