After over three months of delay, Diageo's much-awaited open offer for United Spirits (USL) has finally been launched today, i.e, April 10,2013. But the success of this open offer, which will close by April 26, is doubted, given that the market price of the stock is almost 25% more than the open offer price of Rs 1,440 per share (It closed at Rs 1792.20 on BSE as on April 9, 2013)
In November 2012, Diageo acquired a 27.4-percent stake in United Spirits triggering a mandatory open offer for 26-percent shareholding at a price of Rs 1,440 per share.However, as per the share purchase agreement (SPA) signed in 2012, if the open offer fails to result in Diageo holding a controlling interest in USL, United Breweries Holdings (UBHL) will agree to vote its remaining shareholding in USL as directed by diageo for a four-year period.
