Diageo makes Rs 11,448.91 crore offer for 26% stake in USL

If Diageo does not secure a majority in USL through the open offer, the obligation on members of the UBHL group on voting with Relay will remain until Diageo gets control or the end of the fourth full financial year of Diageo after July 1, 2014, whichever comes first, the company said.

Diageo's total investment of Rs 18,023.14 crore in USL, on full subscription of the open offer, is expected to be earnings positive in FY2022, the seventh full financial year after completion, it added.

The company said the offer could be open from around June 11 to June 24.
Commenting on the litigation on the earlier transaction to acquire USL shares from UBHL, which has been facing winding-up petitions in various courts, Diageo said: “There can be no certainty as to the outcome of the existing or any further related legal proceedings or the time-frame within which they would be concluded.”

UBHL held 5.93 percent of USL shares as of March 31, while Kingfisher Finvest India Ltd (KFIL) had 3.58 percent as of April 4.