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Diageo Acquiring United Spirits Limited
Diageo Acquiring United Spirits Limited
The acquisition
Inbound because Diageo is a foreign company and USL is an Indian company
and money is coming into the country
Strategic acquisition same line of business and hence expansion for Diageo
The deal
Stock - On 27 May 2013 Diageo subscribed for a preferential allotment of new
shares in USL amounting to 10% of the post-issue enlarged share capital at a total
consideration of INR 20,927,196,000 (249,255,052). Separately, Diageo
acquired 58,668 additional USL shares in the Tender Offer for a total
consideration of INR 85,778,082 (983,789).
Drinks giant Diageo, with its headquarters in London, increased its stake
in USL to 54.8% from 28.8% earlier, as its second open offer to public
shareholders of the Indian spirits major met with complete success on July 3rd
2014.