The UK-based Diageo Plc’s could mop up only 4.37 per cent stake or 5.85 lakh shares of Pioneer Distilleries through the open offer route compared with the target of 24.66 lakh shares (about 20 per cent).
Following the acquisition, Diageo’s stake in Pioneer Distilleries moved up to 85.95 per cent from 81.58 per cent.
The open offer to the shareholders of Pioneer Distilleries was necessitated after Diageo Plc became the promoter entity of United Spirits, which is the promoter of Pioneer Distilleries.
The offer was made by Diageo’s subsidiary in The Netherlands, Relay BV, along with Diageo and United Spirits. These entities had offered a price of Rs 64.02 a share. The Pioneer Distilleries stock on Thursday crashed 5.17 per cent at Rs 55 on the BSE.
According to a company disclosure to the exchanges, it received a total bid for 6.39 lakh shares in the open offer and of these 5.85 lakh shares were transferred to the account of United Spirits on September 30. The remaining 53,708 shares are in the process of being transferred to USL, the statement added.
Pioneer Distilleries had been referred to the Board for Industrial and Financial Reconstruction after the company eroded its net worth.
In November 2012, Diageo Plc had proposed to acquire 53.4 per cent stake in United Spirits for Rs 11,170 crore in a multi-structured deal. Diageo is now the largest shareholder in United Spirits with 25.02 per cent stake. However, this is substantially lower than the 53.4 per cent stake the company had originally planned to acquire.