Diageo wins approval to launch offer for shares it doesn't own in Chinese white spirits group Sichuan Shuijingfang; Diageo sets tender offer at 17.16% below Shuijingfang's last closing share price
March 20, 2012
– Diageo won approval to launch an offer for the shares it doesn’t own in Chinese white spirits group Sichuan Shuijingfang, Reuters reported March 20.
Diageo is required to launch the offer under Chinese rules. However, the company previously said it was not looking for a full takeover and set the tender offer at 17.16% below Shuijingfang's last closing share price.
The move comes as Diageo looks to increase the proportion of its sales in emerging markets to 50% by 2015 from its current mark of just under 40%. The super premium Chinese white spirits market is one of the world's fastest growing spirits sectors and an area in which Diageo is keen to expand.
The primary source of this article is Reuters, London, England, on March 20, 2012.