China: Diageo to increase stake in liquor maker Sichuan Shujingfang Co Ltd

Diageo PLC said on February 26 it intends to increase its stake in Sichuan Shujingfang Co Ltd to 70% from 60% through a partial tender offer, the Morningstar reported.

Sichuan Shujingfang is a Chinese producer of baijiu, a liquor made from grain.

The partial tender offer has been priced at CNY45.00 per share, of CNY2.20 billion in total, or GBP249.0 million.

The offer is still currently being discussed, with both companies stressing that there is no certainty the acquisition will be made.

Shares in the FTSE 100-listed beer and spirits maker were up 1.4% at 2,960.00 pence on February 26.

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