FDBusiness.com

Diageo Bids to Increase Stake in United Spirits

 Breaking News
  • Change of Leadership at Edrington Edrington, the international premium spirits company, has announced that chief executive officer Ian Curle will retire in March 2019 after 15 years in that role. His successor will be Scott McCroskie, who is currently a member of the Edrington board and managing director of The Macallan. Ian Curle joined the business in 1986 through Edrington’s subsidiary [...]...
  • Guinness to Sponsor Six Nations Rugby The iconic global brand Guinness is to become the new title sponsor of the Six Nations, with the Championship to be known as the Guinness Six Nations from 2019. The Six Nations is one of the world’s best attended sports events and regularly attracts record TV and online audiences in the UK, France, Ireland, Italy [...]...
  • Mondelēz International Expands its Global Technical Center in Poland Mondelēz International has announced a new investment in its Global Technical Center in Wroclaw, Poland. Only 1.5 years after the center opening, the company invested a further $5 million, in addition to the initial $17 million investment, to expand the research and development activities beyond Chocolate and Bakery and serve Gum and Candy innovation. This state-of-the-art facility will now serve [...]...
  • Givaudan Launches a New Innovation Platform Givaudan, the global leader in flavours and fragrances, has launched MISTA, a new innovation platform for the food industry. More encompassing than an incubator or accelerator, MISTA is an optimiser, enabling start-ups and established corporations to optimise ideas, products, people and investments. Located in San Francisco, MISTA will open its physical premises in early 2019. With [...]...
  • Cargill Celebrates a Decade of Sustainability and Innovation in Ghana With Investment Plans and Farmer Support Cargill’s cocoa & chocolate business has commemorated its 10th anniversary in Ghana by announcing plans for future investment and farmer support. Cargill’s 2022 roadmap for Ghana includes: * 80,000 farmers receiving capacity building support and facilitated access to inputs through our Farmer Field Schools * The provision of one million new cocoa seedlings for rehabilitation of old farms [...]...

Diageo Bids to Increase Stake in United Spirits

Diageo Bids to Increase Stake in United Spirits
April 16
11:36 2014

Diageo is seeking to increase its stake in United Spirits Ltd, the leading spirits producer in India, from 28.8% to 54.8%. Diageo has launched a tender offer of £1.13 billion to acquire a further 26% of USL.

On a consolidated basis, in the financial year ended 31 March 2013, USL earned net revenue of INR105,980 million (£1.05 billion) and EBITDA of INR13,548 million (£134.0 million) and losses after tax of INR1,050 million (£10.4 million). USL had INR 163,849 million (£1.62 billion) of total assets on a consolidated basis as at 31 March 2013.

Diageo has launched the Tender Offer through Relay, a wholly-owned indirect subsidiary of Diageo. Relay currently holds 28.78% of the issued share capital of USL, acquired for a total investment of £726.6 million). On completion of the Tender Offer (assuming full take-up), Relay will hold 54.78% of USL, and will have paid approximately £1.86 bullion in total.

In the event the Tender Offer is subscribed in full, the total consideration payable at the announced price for Diageo’s increased stake will represent a 38x multiple of USL’s EBITDA on a consolidated basis for the year ended 31 March 2013.

Diageo’s total investment of £1.86 billion in USL is expected to be EP positive in FY2022, the 7th full financial year after completion (assuming a 12 % WACC) and EPS accretive in the year ended 30 June 2016.

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • June 18, 2019Multimodal 2019
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements