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Shares of United Spirits rose nearly 6 per cent during the day following reports that parent Diageo was planning to increase its stake in the Indian liquor major through an open offer.
This is the second time during the last 12 months that Diageo is learnt to be considering increasing its stake from 55 per cent now. During the previous open offer in April 2014, shareholders were offered ₹3,030 a share.
Sources in USL, however, denied plans for an open offer.
United Spirits has over 40 per cent market share of the domestic spirits market. London-based Diageo can increase its stake only up to 75 per cent according to SEBI norms. At Wednesday’s price, a 20 per cent stake will cost Diageo about $900 million.
According to an ICICI Securities report, United Spirits has over 21 millionaire brands, spread across segments and price points.
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