Diageo PLC said Aug. 13 that it closed a partial tender offer carried out under its proposal to increase its stake in Chinese liquor producer Sichuan Shuijingfang Co. Ltd., also known as Sichuan Swellfun Co. Ltd., from 39.71% to as much as 60%.
The British alcoholic beverages company's tender offer was made through its wholly owned subsidiary Grand Metropolitan International Holdings Ltd. and closed Aug. 11.
Diageo, which owns brands including Johnnie Walker, Smirnoff and Captain Morgan, said 247,176,244 shares accounting for approximately 50.59% of Sichuan Shuijingfang have been tendered for acceptance under the offer. As the total shares tendered exceeds the maximum number of 99,127,820 originally proposed, Grand Metropolitan will purchase them on a pro rata basis.
The offer price was adjusted to 61.38 Chinese yuan per share from the previously announced 62 yuan per share because Sichuan Shuijingfang distributed a cash dividend of 62 Chinese fen per share during the offer period.
The partial tender offer is expected to be settled Aug. 17. Diageo said that upon completion, it will hold an aggregate equity stake of 60% in Sichuan Shuijingfang, which will continue to be listed on the Shanghai Stock Exchange.
As of Aug. 13, US$1 was equivalent to 6.89 Chinese yuan.