The offer, open on April 10-26, was meant to acquire close to 38 million shares at Rs 1,440 a piece.
However, with the USL share trading at a premium of 44 per cent, the offer drew poor response.
Last November, Diageo had announced a multi-pronged Rs 11,165-crore (Rs 111.65 billion) deal to acquire up to a 53.4 per cent stake in USL, owned by Vijay Mallya.
In addition to the open offer, Diageo had struck a deal with Mallya’s UB Group to acquire a further 27.4 per cent through a preferential allotment and also treasury stocks in the US.
In a key clause in the agreement, Diageo had added if it ended up owning less than 50.1 per cent, the share purchase agreement obliged United Breweries Holdings Ltd, the holding company of UB Group, to vote in favour of all USL resolutions proposed by Diageo for four years.
“If the tender offer does not result in Diageo acquiring a majority interest in USL, UBHL has agreed to vote its remaining USL shareholding as directed by Diageo until Diageo reaching a majority position or the end of the fourth full financial year,” the company had said.
According to information available, the next step will be the 10
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