Srei Infrastructure Finance ‘exploring' Diageo open offer

KOLKATA: Srei Infrastructure Finance said it will explore Diageo's second open offer to cash out of United Spirits. The non-banking finance company acquired 4.9-million shares of USL following its Rs 430-crore deal with ICICI Bank, in which the bank sold its sticky loans given to Kingfisher Airlines to Srei's venture capital fund. Srei also has a direct loan exposure of Rs 70 crore to USL.

"Diageo's second open offer is lucrative. The decision to sell the stake will depend on whether investors want to redeem it," a Srei official said, adding "It's a good opportunity.

We will examine and explore the open offer to see whether we can participate." The official said the investment is safe for investors.

"The loan has been earning good returns for investors as well as for Srei Venture Capital." Srei Group chairman Hemant Kanoria said, "The trustee will take an independent decision at an appropriate time. Today, there's no reason to panic because the underlying value of the security has substantially gone up."