LAS VEGAS, NV - MARCH 19: Head mixologist for Diageo Wine and Spirits Elayne Duff speaks at the 28th annual Nightclub & Bar Convention and Trade Show at the Las Vegas Convention Center on March 19, 2013 in Las Vegas, Nevada.
Mumbai: Global liquor major Diageo has submitted details sought by market regulator Sebi regarding its Rs 5,441 crore open offer for buying stake in Vijay Mallya-led United Spirits.
The open offer to buy 26 percent stake in United Spirits, which was to start yesterday, was postponed pending final approval from Sebi. Diageo has submitted its replies to clarifications sought by Sebi on the open offer for United Spirits. Sebi will take a decision in due course, a source said.
UK drinks group Diageo's mandatory tender offer to buy up to 26 percent of shares in India's United Spirits has been postponed as the deal has yet to receive local regulatory approvals, a source with direct knowledge of the matter said on Monday.
Diageo agreed in November to buy a 53.4 percent stake in United Spirits Ltd for $2.1 billion under a two-stage process including the mandatory tender offer which was set to open on Monday and close on January 18.
United Spirits-Diageo may have to divest stake in Whyte & Mackay for the deal between the two companies to sail through, CNBC TV18 reported today quoting sources.
The company is likely to get 12-18 months to divest stake in Whyte & Mackay, which will help Diageo deal with the scrutiny of anti-trust regulators in the UK and Europe easily.
Diageo will launch a mandatory share tender offer to buy up to 26 percent additional stake in United Spirits from public shareholders on January 7, the manager to the offer said in a notice to the Bombay Stock Exchange.
Earlier this month, Diageo agreed to buy a majority stake in United Spirits, controlled by businessman Vijay Mallya, for $2.1 billion, fuelling a push by the world's biggest spirits group into fast-growing markets.
Diageo has agreed to buy a majority stake in United Spirits Ltd, controlled by Vijay Mallya, for $2.1 billion, or Rs 11,000 crore, fuelling a push by the world's biggest spirits group into fast-growing markets.
However, the fate of his Kingfisher Airlines was not clear as Mallya chose to delink the United Spirits sale with the United Spirits deal.
He adopted a guarded approach on the issue of using the money received from Diageo to bail out the Kingfisher Airlines, which has been grounded since September 30.
Each individual company is a public entity. Kingfisher Airlines' issues will be resolved by Kingfisher Airlines and UB Holdings. It would be unfortunate if you try to link this transaction with the airline. Lets not cross contaminate everything and interrelate everything, Mallya said in a conference call after announcing the deal to sell United Spirits stake.
Diageo, which first tried to buy United Spirits in 2008, said on Friday it would end up with 53.4 percent of India's largest spirits company in a two-part deal.
The Johnnie Walker and Guinness owner has been focusing on emerging markets where a growing middle class is developing a taste for more expensive drinks. Diageo has also been in talks to buy leading tequila maker Jose Cuervo.
This (India) will become Diageo's number two market after the United States and if you look at the projections on what's happening with the emerging middle class...it has the potential in the long term to become our largest market, said Diageo Chief Operating Officer Ivan Menezes.
