Diageo acquired a further 3.3 million shares (approx. 0.46% shareholding) in United Spirits Limited (USL) at a per-share price of INR 591.95 (€7.46).
The shares were purchased on the Bombay Stock Exchange, and take Diageo’s controlling shareholding position to 55.2% of USL.
USL is a highly strategic asset for Diageo, the drinks giant said, as it positions it well to capitalise on opportunities within India.
The Guinness maker is quite keen on the region, calling it one of the most exciting growth markets in the world for total beverage alcohol.
USL’s organic net sales increased 8% during Diageo’s fiscal 2019, with growth from the “Prestige and Above” segment up 12%, led by double-digit growth in Scotch.
In a statement, Diageo said that the business ‘continues to make significant progress on operating margin, which is now in the mid-teens, and is underpinned by a focus on everyday efficiency and investment in capabilities, technology and process improvement across the business.’
© 2019 Checkout – your source for the latest Irish retail news. Article by Aidan O’Sullivan. Click sign-up to subscribe to Checkout.