Diageo Plc’s $2 billion deal to buy a majority stake in Vijay Mallya’s United Spirits (USL) will take longer to complete, as the former will launch a tender offer to acquire a 26% stake in USL between April 10 and April 26. JM Financial, the offer’s manager, had earlier reported that regulatory approvals had delayed the tender offer, which was supposed to have been made before February 18.
British liquor maker had agreed in November to acquire a 27.4% stake in United Spirits from founder Vijay Mallya and his holding company United Breweries (Holdings) as part of its foray in the world’s largest liquor market by volume.
However, the delay partly is also due to lenders to Mallya’s grounded Kingfisher Airlines selling USL shares they held as collateral, which increases the risk of the liquor baron losing more of his assets that have been pledged to bankers against its loans of Rs 7,000 crore. The UK-based maker of Johnnie Walker Scotch whisky and Guinness now hopes to complete the deal in the current quarter to June 30.
Company Name | CMP |
---|---|
United Spirits | 1175.00 |
United Breweries | 1878.00 |
Radico Khaitan | 1616.00 |
Globus Spirits | 702.20 |
Tilaknagar Inds | 236.05 |
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