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Edelweiss Financial Services buys 6.9% stake in United Spirits

LiveMint logoLiveMint 16-06-2014 Mihir Dalal

Bangalore: Edelweiss Financial Services Ltd has bought a 6.9% stake in India’s largest liquor company United Spirits Ltd, which is now controlled by Diageo Plc.

Edelweiss bought the stake through the open market, it said in a regulatory report filed with BSE.

Meanwhile, Diageo has offered to buy an additional 26% in United Spirits from public shareholders, at `3,030 per share—more than double the `1,440 per share it had offered to pay in its first open offer in November 2012, which failed as United Spirits’s public investors held out for a much higher price. The second open offer started on 11 June and is expected to close on 24 June.

The maker of Johnnie Walker Scotch whisky and Smirnoff vodka, had bought a 25% stake in United Spirits last July from the company and its promoters. Diageo said on 15 April that it would pay as much as `11,449 crore to boost its stake in the company to nearly 55% through a second open offer.

USL shares rose 0.45% to `2,795.90 on Monday afternoon on the BSE.

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