Drinks giant Diageo has launched a tender offer to acquire up to 26 per cent more in in India's United Spirits for about €1.4 billion,
The move comes as the company, which owns Guinness, Baileys and Bushmills, looks to bolster its presence in India's growing spirits market. Diageo already holds a 28.78 per cent in United Spirits, but is facing legal action over a portion of that stake.
The amount of shares involved in the new tender could total 37,785,214.
The offer, which is priced at 3,030 rupees per share, would lift Diageo’s total holding in United Spirits to 54.78 per cent.
United Spirits is the leading spirits producer in India. On a consolidated basis, in the financial year ended March 31st, 2013, the company earned net revenue of INR 105,980 million (£1,048.3 million) from operations, EBITDA of INR 13,548 million (£134.0 million) and losses after tax of INR 1,050 million (£10.4 million).
The company recently announced a shakeup of its management team as it seeks to expand in emerging markets with Gilbert Ghostine, head of Asia Pacific since 2009, appointed to the role of president Diageo India and Greater China, and chief corporate development officer.
