Lukewarm response to Diageo's open offer for United Spirits

Diageo Plc's Rs 5,441-crore open offer for acquiring 26% stake in Vijay Mallya-led United Spirits has come a cropper with the offer eliciting a tepid response from public investors.

The offer was part of the nearly $2-billion deal that would see Diageo snapping up majority stake in United Spirits.

Of 3.8 crore shares of United Spirits that were on offer, shareholders tendered just 64,169 shares and only 58,688 scrips were accepted, according to a regulatory filing by Vijay Mallya-led firm.

Diageo had offered to buy shares at a price of Rs 1,440 per piece. The open offer began on April 10 and closed on April 26. The manager to the offer was J M Financial.

Under the Diageo-United Spirits deal, the global brewer would acquire up to 53.4% stake in United Spirits, one of the largest spirits firm.

UK-based Diageo is primarily engaged in the manufacturing and distribution of spirits, beer and wine in around 180 countries. Its well known brands include Johnnie Walker, Smirnoff and Ciroc.

In India, Diageo is present through its wholly-owned subsidiary Diageo India Pvt Ltd.

United Spirits today closed at Rs 2303.75 on BSE.