India: Diageo aims to increase stake in United Spirits

Diageo Plc, the multinational beverages company based in London, has offered $1.9 billion to increase its stake in India´s United Spirits Ltd. At the moment Diageo holds 28.8% of United Spirits and if successful, would end up with 54.8% of the India´s largest spirit company,  offering 3,030 rupees ($50.30) per share.

Even though two-thirds of Indians do not drink alcohol for religious or cultural reasons, Deirdre Mahlan, chief financial officer of Diageo commented that the company believed the transaction would be “successful”.

She commented: “This price is also at an attractive premium to the market price and we believe that it creates a unique opportunity for investors to be able to monetize their investments.”

The tender offer was unlikely to result in management changes, she added.

Source: Reuters