Diageo launched a tender offer to the public shareholders of United Spirits (USL) to acquire up to 37,785,214 shares in USL, which represents 26% of USL's fully diluted issued share capital.
The tender offer will be at a price of Rs 3,030 a share and the total consideration for the increased stake (assuming take-up in full at the announced price) will be Rs 114.48 billion.
Diageo has launched the tender offer through Relay B.V, a wholly-owned indirect subsidiary of Diageo. Relay currently holds 28.78% of the issued share capital of USL, acquired for a total investment of Rs 65.74 billion.
On completion of the tender offer (assuming full take-up), Relay will hold 54.78% of USL’s issued share capital and will have paid approximately Rs 180.23 billion for its total shareholding in USL.
Shares of the company gained Rs 291, or 11.38%, to trade at Rs 2,848. The total volume of shares traded was 204,870 at the BSE (12.17 p.m., Tuesday).