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United Spirits’ shareholders approve licensing pact with Diageo; shares surge

Shares of United Spirits Ltd (USL) today surged nearly 7 per cent as the company's minority shareholders have approved a proposal to enter into licensing and cost sharing agreements with certain subsidiaries of its parent Diageo Plc, which were rejected earlier last year.

USL's scrip climbed 6.63 per cent to settle at Rs 3,050.45 on the BSE. During the day, it gained 9.85 per cent to Rs 3,142.55 -- its 52-week high. At the NSE, shares of USL soared 6.30 per cent to end at Rs 3,037.

On the volume front, 1.63 lakh shares of the company changed hands at the BSE, while over 15 lakh shares were traded at the NSE during the day.

In a filing to the BSE on Saturday, the company had said a special resolution was approved by the shareholders "with requisite majority" at an extraordinary general meeting held on Friday.

The company had said 76.33 per cent of the minority shareholders approved its proposal, a tad over the 75 per cent requirement.

Although the promoter and promoter groups are required to abstain from voting, the filing had said United Breweries (Holdings) Ltd, holding 2.90 per cent shares of the United Spirits and Kingfisher Finvest India Ltd, holding 1.14 per cent of the share capital, have exercised their votes in favour of the special resolution.

The approval by the minority shareholders comes nearly two months after they had rejected as many as 9 of 12 resolutions, including some pertaining to pacts with entities connected to erstwhile promoter Vijay Mallya.

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