Diageo Proposes to Increase Stake in Sichuan Shuijingfang

By Dimitrios Kontos

Diageo PLC (DGE.LN) said Monday that it has approached Sichuan Shuijingfang Company Limited with a proposal for a partial tender offer to increase its equity stake to 60% in the China-based company.

The offer price is CNY62 ($9.5) per share, said the FTSE 100-listed drinks company--which currently holds an approximate 39.71% interest in the Shanghai-listed alcoholic-products manufacturer.

Diageo said the outlined proposal doesn't constitute an offer and doesn't create an obligation to make an offer. The proposal is still under discussion and there can be no certainty that any offer will be made, Diageo said.

London-listed shares at 1250 GMT were down 2% at 2691 pence.

Write to Dimitrios Kontos at dimitrios.kontos@dowjones.com

(END) Dow Jones Newswires

June 25, 2018 09:12 ET (13:12 GMT)

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