Diageo Announces Offer For Up To 26% Of India-based United Spirits

(RTTNews) - Drinks giant Diageo Plc. (DGE.L, DEO) Tuesday said it would launch a tender offer to buy up to 26 percent more of India's United Spirits Ltd (MCDOWELL-N, 532432) in a deal estimated to be valued at about $1.9 billion.

Diageo said in a regulatory filing that it plans to buy 37.79 million fully paid up equity shares of face value of 10.0 Indian rupee, constituting 26 percent of the total fully diluted voting equity share capital at a price of 3,030 rupee per share.

Diageo currently has a 28.78 percent in United Spirits. If the current offer is successful, its holding will increase to 54.78 percent.

United Spirits surged 11.3 percent on the news and is currently trading at 2845.75 rupee.

Diageo rose 2.8 percent on the LSE on Monday to settle at 1,925.17 pence.