Diageo gains approval for shares in Sichuan Chengdu

published 20 March 2012

Diageo, the FTSE 100 beverage firm, has gained regulatory approval to launch a mandatory tender offer for the outstanding shares in Sichuan Chengdu Quanxing Group from Chengdu Yingsheng Investment Holding.

The acquisition of an additional 4% stake takes the firm's total current holding to 53%.

The change of control of Quanxing requires Diageo to make a mandatory tender offer (MTO) for the remaining 60.3% outstanding shares of ShuiJingFang. The MTO price is set at RMB 21.45, which is the minimum price permitted by Chinese takeover regulations.