02 DEC 2019
Board's approval for amalgamation – Dec 2, 2019
United Spirits Ltd. gets Board approval to merge its majority owned subsidiary Pioneer Distilleries Ltd.
Mumbai, December 2, 2019: The Board of Directors of United Spirits Ltd. (USL) at its meeting held today considered and approved a scheme of amalgamation of its majority owned and listed subsidiary Pioneer Distilleries Limited (PDL) with the Company. The scheme is now subject to the receipt of requisite approvals from the statutory authorities and the respective shareholders and creditors of both the companies.
Upon completion of the merger, the non-promoter shareholders of Pioneer Distilleries Limited will receive 10 equity shares of United Spirits Ltd for every 47 equity shares of Pioneer Distilleries Limited, held by them as on the record date. Post the merger, United Spirits Ltd’s issued capital will expand by about 0.1%. and Diageo’s revised holding in United Spirits Ltd. will be 55.18%.
Speaking about the proposed merger, Sanjeev Churiwala, Executive Director and Chief Financial Officer, Diageo India said, ‘’The proposed merger is part of our strategy to consolidate the India business and further simplify the operating structure which would result in enabling business synergies and efficiencies. We believe this decision will maximize shareholder value for both the companies.”
The proposed amalgamation of the two companies is subject to the receipt of requisite approvals from the statutory authorities including Securities Exchange and Board of India, National Stock Exchange of India Limited, BSE Limited, the National Company Law Tribunal, and the respective shareholders and creditors of United Spirits Ltd. and Pioneer Distilleries Ltd.