Diageo may have to make another open offer in USL

Sebi is probing role of board of directors of USL in alleged fund diversion findings

British spirits maker Diageo Plc may have to make another open offer to the shareholders of United Spirits (USL). Capital market regulator Securities and Exchange Board of India (Sebi) is of the view that the $75-million severance package paid to Vijay Mallya by Diageo in February last year has resulted in change of ownership at the country’s largest liquor company. Change of control, regardless of the acquisition of shareholding, is one the open-offer triggers under Sebi’s takeover code regulations.

“Payment of $75 million to Vijay Mallya was not part of any agreement made previously between Diageo and Mallya at the