UB group stocks soar on United Spirits stake sale buzz
UB Group stocks on Friday rose by up to 5 percent amid reports that the Vijay Mallya-led business house has reached a deal for a stake sale in United Spirits with world's largest spirit maker Diageo.
Mumbai: UB Group stocks on Friday rose by up to 5 percent amid reports that the Vijay Mallya-led business house has reached a deal for a stake sale in United Spirits with world's largest spirit maker Diageo.
Shares of United Spirits closed 1.22 percent higher at Rs 1,359.70, while United Breweries Holdings Ltd gained 3.34 percent. USL had touched a one year high of Rs 1,425 during the day.
Among others, United Breweries rose by 0.39 percent, McDowell Holdings surged 5 percent. Group entity Kingfisher Airlines also jumped by 4.97 percent.
The rally in UB group stocks was in sharp contrast with a weak broader market where the Sensex ended at 18,683.68, down 162.58 points.
Since September 25, shares of United Spirits have rallied 18.5 percent.
After markets closed today, world's largest spirits maker Diageo Plc announced it will acquire 53.4 percent stake in United Spirits for Rs 11,166.5 crore in a multi-structured deal, which may provide Vijay Mallya a breather from troubles emanating from the grounded Kingfisher Airlines.
In a joint statement today, the UK-based firm said it has entered into an agreement with United Breweries (Holdings) Limited and United Spirits Ltd (USL) to acquire 27.4 percent stake in USL, the top liquor company in India at Rs 1,440 per share aggregating Rs 5,725.4 crore.
Further, Diageo will also acquire 19.3 percent stake in USL at a price of Rs 1,440 per share from the UBHL group, the USL Benefit Trust, Palmer Investment Group Ltd and UB Sports Management (two subsidiaries of USL) and SWEW Benefit Company (a company established for the benefit of certain USL employees).