United Spirits hits fresh 52-week high ahead of AGM, up 10%

NEW DELHI: United Spirits Ltd surged over 10 per cent in early trade on Monday to hit its 52-week high of Rs 1090.80 ahead of its annual general meeting (AGM) on Tuesday on reports that Diageo Ltd is in advanced talks to buy a stake in billionaire Vijay Mallya’s United Spirits Ltd.

At 12:30 pm, United Spirits was trading 9.5 per cent higher at Rs 1088.50. It has hit a low of Rs 1005 and a high of Rs 1090.80 today.

According to media reports, the deal is expected to be announced next month. UB group is the promoter of USL with a 28 per cent stake.

“USL’s market capitalization stands currently at Rs 13,000 crore and as part of the deal, Diageo will be given the right to appoint a majority of United Spirits board members,” said an Angel Broking report.

The talks between UB group and Diageo which fell apart in 2009 resumed in early 2012.

“The deal is expected to go through this time as the UB group is looking to raise funds for repaying the debts of its other group company Kingfisher Airlines,” said the report.

The Mumbai-based brokerage firm remains neutral on United Spirits Ltd.