Shares of United Spirits (USL) hit a record high of Rs 3,142.55 on Monday, up as much as 10 percent intraday after shareholders approved licence for manufacturing and distribution of Diageo brands.
USL on Saturday said its minority shareholders approved a proposal to enter into licensing and cost sharing agreements with certain subsidiaries of its parent Diageo Plc, which was rejected earlier last year.
In a filing to the BSE, the company said a special resolution was approved by the shareholders "with requisite majority" at an extraordinary general meeting held on Friday. The company said 76.33 percent of the minority shareholders approved its proposal, a tad over the 75 percent requirement.
Although the promoter and promoter groups are required to abstain from voting, the filing said United Breweries (Holdings), holding 2.90 percent shares of the United Spirits and Kingfisher Finvest India, holding 1.14 percent of the share capital, exercised their votes in favour of the special resolution.
The proposal included entering into licence for manufacture and sale agreements, distribution, cost sharing and other agreements by the company with its holding company Diageo Plc, the filing added.
The approval by the minority shareholders comes nearly two months after they had rejected as many as 9 of 12 resolutions, including some pertaining to pacts with entities connected to erstwhile promoter Vijay Mallya.
USL is now controlled by world's largest spirits maker Diageo, which had acquired an additional 26 percent shares in USL for Rs 11,448.91 crore in July with an aim to take its total stake in the Indian firm to 54.78 percent. Liquor baron Vijay Mallya has been recently re-elected as non-executive director and chairman of United Spirits.
At 11:31 hours IST, the scrip of United Spirits was quoting at Rs 3,068.00, up Rs 207.25, or 7.24 percent. Meanwhile, United Breweries Holdings rallied 6.21 percent to Rs 22.25 and United Breweries climbed 2.33 percent to Rs 923.30 on the BSE.
(With inputs from PTI)
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