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Diageo announces completion of MTO for the outstanding shares in Sichuan Shuijingfang

BritCham / CBBC
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Further to the announcement made on 20th March, member company Diageo has completed the mandatory tender offer (MTO) for the outstanding shares of Sichuan Shuijingfang Co., Ltd. and there was a nominal take up of 3,154 shares (0.001% of the total 60.3% shares in issue not held by Quanxing).

The MTO was required by Chinese takeover regulations following the approval of Diageo taking control of Sichuan Chengdu Quanxing Group Company Ltd. from Chengdu Yingsheng Investment Holding Co., Ltd. The MTO offer price was RMB21.45 per share and the offer period expired on 24th April.

Gilbert Ghostine, President of Diageo Asia Pacific commented: “This marks the end of a journey that started over two years ago when our partners agreed that we could move to take control of Quanxing and increase our participation in ShuiJingFang. It represents a milestone in the development of our ambition to play a significant role in Chinese white spirits, the most valuable beverage alcohol category in China. We could not have come this far without the support of the Chinese Government and the continued strong support of our Chinese partners”.

Background information
ShuiJingFang is one of the largest super premium Chinese white spirits brand by volume in China.  The company is listed on the Shanghai Stock Exchange (600779).

Diageo made its first 43% investment in Quanxing in February 2007 and increased its shareholding to 49% in July 2008. Following an Indicative Announcement on 1st March 2010, it then increased its shareholding to 53% in July 2011. Quanxing itself holds a 39.7% stake and is the largest shareholder in ShuiJingFang. Since 2007, Diageo has been distributing the ShuiJingFang portfolio across South East Asia, Korea, Australia and in the USA.

The MTO price was the regulatory minimum price set at the arithmetic average of the volume weighted average price for each of the 30 trading days prior to the Indicative Announcement made on 1st March 2010.

About Diageo
Diageo is the world's leading premium drinks business with an outstanding collection of beverage alcohol brands across spirits, wines and beer categories. These brands include Johnnie Walker, Crown Royal, JεB, Buchanan’s, Windsor and Bushmills whiskies, Smirnoff, Cîroc and Ketel One vodkas, Baileys, Captain Morgan, Jose Cuervo, Tanqueray and Guinness.

Diageo is a global company, with its products sold in more than 180 countries around the world. The company is listed on both the New York Stock Exchange (DEO) and the London Stock Exchange (DGE).

Source: Diageo

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