Manufacturing & Supply Chain

Diageo Bids to Increase Stake in United Spirits

 Breaking News

Diageo Bids to Increase Stake in United Spirits

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

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.


Warning: count(): Parameter must be an array or an object that implements Countable in /home/manufacturingsup/public_html/wp-content/themes/legatus-theme/includes/single/post-tags.php on line 5

About Author

mike

mike

Related Articles



 

New Subscriber

    Subscribe Here



    Advertisements
















    National Manufacturing Conference & Exhibition 2020

    NIBRT Springboard Success Stories