United Spirits to issue 14,532,775 shares at Rs. 1440 to Diageo plc

The Board of Directors of United Spirits Ltd at its meeting held on May 27, 2013, has approved the issue and allotment of 14,532,775 equity shares of face value of Rs. 10/- each at a price of Rs. 1,440/- per share (including a premium of Rs. 1,430/- per equity share) of United Spirits Limited (the "Equity Shares") to Relay B.V., an indirect wholly owned subsidiary of Diageo plc, ("Relay") on a preferential basis in terms of the Preferential Allotment Agreement entered into between Relay, the Company and Diageo plc on November 09, 2012 and pursuant to the approval of the shareholders through postal ballot on December 14, 2012 by way of special resolution, for an aggregate amount of Rs. 20,927,196,000/- (Rupees two thousand ninety two crores seventy one lakhs and ninety six thousand only) and in accordance with applicable law.

Consequent to the above allotment, the paid up share capital of the company stands increased to Rs. 1,453,277,430/- (Rupees One Hundred Forty Five Crores Thirty Two Lakhs Seventy Seven Thousand Four Hundred and Thirty only) divided into 145,327,743 equity shares of Rs. 10/- each from the existing paid up equity share capital of Rs. 1,307,949,680/- (One Hundred Thirty Crores Seventy Nine Lakhs Forty Nine Thousand Six Hundred and Eighty only) divided into 130,794,968 equity shares of Rs. 10/- each. Following the issue and allotment of the Equity Shares to Relay, Relay will hold 10% of the post issue paid up capital of the Company.

The Company understand that a total of 58,668 shares ("Tendered Shares") have been tendered by the public shareholders of the Company and accepted by Relay B.V. in the open offer which closed on April 26, 2013. As of May 27, 2013 these shares are in the process of being transferred to Relay B.V and immediately subsequent to the transfer of the Tendered Shares, Relay B.V. will hold 14,591,443 shares in the Company (constituting 10.04% of its post issue paid up share capital).

Shares of United Spirits Ltd was last trading in BSE at Rs.2513.55, down by Rs.55.95 or 2.18%. The stock hit an intraday high of Rs.2605 and low of Rs.2484.

The total traded quantity was 4.47 lakhs compared to two week average of 3.47 lakhs.

Source : Equity Bulls

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