 "Diageo to expand captive shared services centre to 1,000 people")
United Spirits has rallied nearly 6% to Rs 2,199, extending its Tuesday’s over 5% surge on the BSE, after a Bloomberg repot suggested that Diageo Plc is considering increasing its majority stake in the company.
In past two trading sessions, the stock has soared 12.5% from Rs 1,954 on Monday, and has gained 20% from its recent low of Rs 1,826 touched on December 26, 2016. It hit a 52-week low of Rs 1,775 on November 22, during intra-day trade.
Diageo Plc, the maker of Johnnie Walker scotch and Smirnoff vodka, has a 55% stake in United Spirits. The UK distiller agreed to acquire a stake in United Spirits, the maker of McDowell’s No. 1 whiskey and Romanov vodka, in 2012. It bought a further 26% stake through an open offer in 2014 for Rs 3,030 a share raising its holding to 54.8%. The stock hit a record high of Rs 4,080 on March 5, 2015 in intra-day trade.
Earlier, in May 3, 2016 on the report, Diageo in initial talk to hike stake in Untied Spirits to 72%, the company clarified that they were not aware of any such talks and unable to comment on the same.
Meanwhile, United Spirits said it has received revised ratings of company’s term loans, fund based facilities and non-fund based facilities.
The ratings from ICRA reflect strong financial flexibility; strengthened corporate governance, compliance practices and framework, post-acquisition of Management control by Diageo Plc. Diageo is rated A3, i.e. stable by Moody’s.
United Spirits has completed the transition from its earlier promoters, including termination of historical contracts with former group companies and also completion of additional enquiries during July 2016. With this it has removed uncertainties related to contingent liability, arising from the same, ICRA said in a release.
At 10:00 am; the stock was up 5.5% at Rs 2,195 on the BSE as compared to 0.63% rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 628,188 shares changed hands on the BSE and NSE so far.
In past two trading sessions, the stock has soared 12.5% from Rs 1,954 on Monday, and has gained 20% from its recent low of Rs 1,826 touched on December 26, 2016. It hit a 52-week low of Rs 1,775 on November 22, during intra-day trade.
Diageo Plc, the maker of Johnnie Walker scotch and Smirnoff vodka, has a 55% stake in United Spirits. The UK distiller agreed to acquire a stake in United Spirits, the maker of McDowell’s No. 1 whiskey and Romanov vodka, in 2012. It bought a further 26% stake through an open offer in 2014 for Rs 3,030 a share raising its holding to 54.8%. The stock hit a record high of Rs 4,080 on March 5, 2015 in intra-day trade.
Earlier, in May 3, 2016 on the report, Diageo in initial talk to hike stake in Untied Spirits to 72%, the company clarified that they were not aware of any such talks and unable to comment on the same.
Meanwhile, United Spirits said it has received revised ratings of company’s term loans, fund based facilities and non-fund based facilities.
The ratings from ICRA reflect strong financial flexibility; strengthened corporate governance, compliance practices and framework, post-acquisition of Management control by Diageo Plc. Diageo is rated A3, i.e. stable by Moody’s.
United Spirits has completed the transition from its earlier promoters, including termination of historical contracts with former group companies and also completion of additional enquiries during July 2016. With this it has removed uncertainties related to contingent liability, arising from the same, ICRA said in a release.
At 10:00 am; the stock was up 5.5% at Rs 2,195 on the BSE as compared to 0.63% rise in the S&P BSE Sensex. The trading volumes on the counter more than doubled with a combined 628,188 shares changed hands on the BSE and NSE so far.
