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  • Diageo-United Spirits Limited Deal

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    crapidomonas
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    Diageo acquired United Spirits Limited for Rs. 130 billion, paying a high price-to-earnings ratio of 6.85 and price-to-revenue ratio of 1.75 for the outstanding shares. However, the share prices were considered overvalued and the initial deal was declared void by the High Court due to scrutiny from the exchange on which it was made.

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    Diageo

    Original Title

    M&A-USL

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    Diageo acquired United Spirits Limited for Rs. 130 billion, paying a high price-to-earnings ratio of 6.85 and price-to-revenue ratio of 1.75 for the outstanding shares. However, the share prices were considered overvalued and the initial deal was declared void by the High Court due to scrutiny from the exchange on which it was made.

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    © All Rights Reserved
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    26 views3 pages

    Diageo-United Spirits Limited Deal

    Uploaded by

    crapidomonas
    Diageo acquired United Spirits Limited for Rs. 130 billion, paying a high price-to-earnings ratio of 6.85 and price-to-revenue ratio of 1.75 for the outstanding shares. However, the share prices were considered overvalued and the initial deal was declared void by the High Court due to scrutiny from the exchange on which it was made.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 3

    DIAGEO-UNITED SPIRITS LIMITED

    DEAL

    Valuation= outstanding shares* market price


    of the shares
    Actual price paid by Diageo=Rs.130 billion
    The share prices were overvalued and the deal
    was under the scrutiny of the exchange where
    the initial deal was declared as void by the
    High Court also
    Price to Earnings Ratio= 2442.90/(356.60)
    =-6.85

    Price to Revenue ratio=2442.90/1392.121


    =1.75

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