StockMarketWire.com - Diageo has completed the acquisition of a further 14.98% stake in United Spirits Limited, the leading spirits company in India.

The consideration was INR1440 per share and the total consideration of INR31,345,558,560 (£344,190,791) has been settled today (4 July).

On 27 May Diageo subscribed for a preferential allotment of new shares in USL amounting to 10% of the post-issue enlarged share capital at a total consideration of INR 20,927,196,000 (£249,255,052).

Separately, Diageo acquired 58,668 additional USL shares in the tender Offer for a total consideration of INR 85,778,082 (£983,789).

Diageo now holds 36,359,192 shares representing 25.02% of the enlarged USL share capital at an aggregate cost of INR 52,358,532,642 (approximately £594,429,632).

This represents a 18x multiple of USL's EBITDA for the year ended 31 March 2013 and the transaction is expected to be EPS accretive in year 2 and economic profit positive in year 5 assuming a 12% WACC.

At 2:36pm: [LON:DGE] Diageo share price was +73p at 1970.5p



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