Shareholders rejected the permission to grant USL a takeover of Diageo India's operation through a postal ballot. The company failed to get 75 percent nod as 30 percent institutions voted against the resolution.
Minority shareholders of United Spirits rejected nine proposals at its extraordinary general meet (EGM), but the company is said to re-approach shareholders to seek nod for the USL-Diageo deal.
Shareholders rejected the permission to grant USL a takeover of Diageo India's operation through a postal ballot. The company failed to get 75 percent nod as 30 percent institutions voted against the resolution.
The company is expected to reach out to these institutional shareholders to explain the deal.
In a statement the company has said, "The proposed contract with Diageo is value accretive for the company. The deal is a part of strategy to build and extend competitive advantage in the premium segment. We are surprised and disappointed at the outcome of the postal ballot and will now look to understand the basis for the shareholder view underpinning this vote."
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