United Spirits tumbles as Diageo open offer ends today

United Spirits fell 7.97% to Rs 2582.55 at 15:30 IST on BSE as the open offer made by Diageo, the world's largest liquor maker, to acquire additional stake in the company ends today, 19 June 2014.

Meanwhile, the BSE Sensex was down 66.71 points, or 0.26%, to 25,179.54.

On BSE, so far 1.98 lakh shares were traded in the counter, compared with an average volume of 1.48 lakh shares in the past one quarter.

The stock hit a high of Rs 2,797.90 and a low of Rs 2,545 so far during the day. The stock hit a 52-week high of Rs 2,940.55 on 15 April 2014. The stock hit a 52-week low of Rs 1,993.30 on 28 August 2013.

The stock had outperformed the market over the past one month till 18 June 2014, rising 6.07% compared with 4.66% rise in the Sensex. The scrip had, however, underperformed the market in past one quarter, rising 13.01% as against Sensex's 15.64% rise.

The large-cap company has an equity capital of Rs 145.33 crore. Face value per share is Rs 10.

Diageo made an open offer to public shareholders of United Spirits to acquire an additional 26% stake at Rs 3,030 per share. The offer opened on 6 June 2014 and will end today, 19 June 2014.

Diageo, through a subsidiary Relay B V, is the largest shareholder of USL, with a 28.78% stake (as on 31 March 2014). This is Diageo's second attempt to gain majority control in India's number one alcoholic beverages firm.

In 2012, Diageo had announced that it would pick up 53.4% stake in USL in a multi-structured deal.

As per an agreement reached between Diageo and the UB group in November 2012, Diageo agreed to acquire a 27.4% stake in United Spirits -- partly by acquiring shares directly from the promoter entities of the United Breweries group and partly by way of subscribing to a preferential share issue of United Spirits. The agreement triggered a mandatory open offer from Diageo to acquire additional 26% shares in United Spirits as per the Securities & Exchange Board of India's takeover norms.

Diageo's mandatory open offer to acquire an additional 26% in United Spirits at an offer price of Rs 1,440 per share closed on 26 April 2013. The company accepted bids for 58,668 shares as against proposed open offer size of 3.77 crore shares.

United Spirits' net profit declined 19.4% to Rs 64.92 crore on 5.22% growth in total income to Rs 2351.49 crore in Q3 December 2013 over Q3 December 2012.

United Spirits is the largest alcohol beverage company in India, having sold 123.70 million cases in the year ended 31 March 2013.

Powered by Capital Market - Live News