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VEDL - Vedanta News Story

₹124 0.6  0.5%

Last Trade - 10:05am

Sector
Basic Materials
Size
Large Cap
Market Cap £4.69bn
Enterprise Value £7.50bn
Revenue £8.67bn
Position in Universe 64th / 3000

UPDATE 1-Diageo exploring options to delist Indian arm - CNBC TV-18

Mon 18th May, 2020 11:06am
(Adds Diageo comment, background on investors)
    May 18 (Reuters) - Diageo Plc  DGE.L , the world's largest
spirits maker, is exploring options to delist its Indian arm,
United Spirits Ltd  UNSP.NS , by buying out minority
shareholders, CNBC TV-18 reported on Monday.
    Diageo, the maker of Johnnie Walker whiskey and Tanqueray
Gin, currently owns an about 56% stake in United Spirits after
slowly building it up over several years. 
    The company has started talks with investment bankers and
consultants on a delisting offer, the CNBC TV-18 report https://www.cnbctv18.com/business/diageo-exploring-option-to-delist-united-spirits-5947471.htm
 said, citing sources familiar with the matter.  
    "The management believes that the current market conditions
and the pricing of USL is conducive to a delisting and that's
why they are exploring this option," the CNBC report said,
citing a senior executive at the company who did not want to be
named.
    United Spirits' shares were trading flat at 0825 GMT on
India's National Stock Exchange on Monday. The stock is down
nearly 25% over the past three months, slightly outperforming
the broader Nifty 50 index's  .NSEI  27% decline.
    UK-based Diageo's shares were up 1.8% at 2,792 pence on the
London Stock Exchange.
    Diageo India said it would not comment on market rumours and
speculation.
    The unit counts the Indian government and institutional
investors such as Vanguard Group among its minority
shareholders.
    Diageo's move comes nearly a week after miner Vedanta
Resources Ltd said it was delisting its Indian unit Vedanta Ltd
 VDAN.NS , as it seeks to accelerate the simplification of its
corporate structure amid the coronavirus pandemic.  urn:newsml:reuters.com:*:nL4N2CU3JH

 (Reporting by Siddharth Cavale and Chandini Monnappa in
Bengaluru; Editing by Ramakrishnan M. and Maju Samuel)
 ((siddharth.cavale@thomsonreuters.com; within U.S.
+1-646-223-8780; outside U.S. +91 80 6749 1130; Reuters
Messaging: siddharth.cavale.thomsonreuters.com@reuters.net))
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