Shares of United Spirits rose 4 per cent today after global liquor major Diageo Plc received the Securities and Exchange Board of India’s clearance for an open offer to acquire 26 per cent stake in the UB group company from public shareholders.

Following this, the scrip moved up by 4 per cent to Rs 1,929.90 on the BSE, in an otherwise weak stock market. On the NSE, the stock was up 3.86 per cent at Rs 1,929.95.

In terms of volume, 4.49 lakh shares changed hands on the BSE, while over 22.65 lakh shares were traded on the NSE.

Moving closer to complete its Rs 11,167-crore takeover of majority stake in United Spirits, Diageo Plc has got the market regulator’s clearance for an open offer to acquire 26 per cent stake from public shareholders.

As part of the deal for the purchase of 53.4 per cent stake in Vijay Mallya-led UB group’s United Spirits Ltd, Diageo has made a Rs 5,441-crore open offer for the purchase of 26 per cent stake in the company from non-promoter shareholders.

The open offer, which was made about three months ago soon after the deal was announced on November 9, has been now cleared by the SEBI after numerous clarifications sought by the regulator and the subsequent representations made to it in this regard.

The deal is, however, still awaiting a green signal from the Competition Commission of India, although the concerned parties (Diageo and UB group firms) have submitted certain clarifications sought from them.

(This article was published on February 5, 2013)
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