LONDON - Diageo said on Tuesday that it had made an offer of 1.13 billion pounds, or about $1.9 billion, to take a controlling stake in United Spirits of India.
The London-based Diageo has offered to buy an additional 26 percent stake in United Spirits for 3,030 rupees, or about $50.30, a share, 20 percent above the 60-day volume-weighted average price. Through a subsidiary, Diageo already owns 28.78 percent of United Spirits. If the offer goes through, Diageo would have a 54.78 percent stake in the company. United Spirits shareholders have until June 24 to accept the offer.
Diageo, the world’s largest distiller, was unsuccessful last year in a bid to take a majority stake in United Spirits.
The new tender offer comes after Suntory, the privately held Japanese food and beverage maker, agreed in January to acquire the producer of Jim Beam and Maker’s Mark whiskeys for $13.6 billion. The deal made Suntory the world’s third-largest distiller, behind Diageo and Pernod Ricard.
United Spirits, the largest distiller in India, posted operating revenue of 105.9 billion rupees in the fiscal year ended March 31, 2013.
Diageo said on Tuesday that it had already received the necessary approvals from competition authorities in India to complete the transaction. Diageo will finance the purchase through cash and existing debt.
