Drink giant Diageo has moved closer to gain control over India-based United Spirits Limited (USL) after having purchased 10% of the proposed 53.4% stake in USL for £300m through its wholly-owned subsidiary Relay BV.
Following the transaction, Diageo Asia-Pacific president Gilbert Ghostine would join the board of USL.
The move comes two days after United Breweries Holdings (UBH), the holding company of the UB group, agreed to sell 12% stake of United Spirits to Diageo at a rate of INR1,440 ($25.8) per share.
Earlier, Diageo agreed to buy 27.4% controlling stake in USL in three-step transaction.
The company has now secured 10% stake of USL, 5% treasury stake held by various United Breweries trusts and 0.44% of the total equity through an open offer. The remaining 12% stake from UBH will take its total stake in USL to 27.4%, which is expected to be finalized by 30 June 2013.
However, Diageo failed to purchase 20% additional stake in USL through an open offer in April 2013.
