After getting CCI's nod for the USL-Diageo open offer, the two companies are trying to rush the approval process with the market regulator, Sebi. USL-Diageo have responded to Sebi's final observation's on the open offer and sources say Sebi's clearance may come in soon, reports Kritika Saxena of CNBC-TV18.
Sebi raised issues with some clauses which were stated as objectionable clauses. The market regulator had problem with the 'Put Option' clause in the share purchase agreement and they said that since it was a forward contract it goes against the takeover code.
Sources indicate that, USL-Diageo had have officially responded to Sebi's clarifications. As the nod from CCI is already in they are rushing in the process because once nod from Sebicomes in, USL and Diageo will officially together put the revised timeline, etc.
However, the pricing remains to be same but in their response to Sebi, the company has altered and changed the 'Put Option' clause, in the share purchase agreement. So, now all eyes are on Sebi's response.
This step is more a less a formality and a nod is likely soon. Diageo officials have confirmed that they have received nod from the CCI and they have sent in their response to Sebi and they are expecting some clarity from the regulator soon. One the required nod is obtained, Diageo will be meeting the lenders that have United Spirits shares as collateral.