<article><p>Diageo Plc, the world&#8217;s largest spirits company, said it has proposed to increase its stake in Chinese baiju maker Sichuan Shujingfang Company to raise its stake to up to 60 per cent through a partial tender offer.</p></article>

<p>Diageo Plc, the world&#8217;s largest spirits company, said it has proposed to increase its stake in Chinese baiju maker Sichuan Shujingfang Company to raise its stake to up to 60 per cent through a partial tender offer.</p>
<p>Diageo offered 62 CNY ($9.50) per Sichuan share of Sichuan, the company said in a statement. It currently holds a 39.71 percent stake.</p>
<p>The British-based maker of Johnnie Walker Scotch and Smirnoff vodka offered close to a 25 percent premium to Sichuan&#8217;s closing price of 49.6 CNY on Monday.</p>
<p>Sichaun said that Diageo would pay a maximum of 6.15 billion CNY ($941.24 million) and that Diageo would fund the deal on its own.</p>
<p>Sichaun said it would not be de-listed if the deal goes through.</p>
<p>China currently represents a relatively small part of Diageo&#8217;s business. Its exposure to the world&#8217;s most populous country is mostly through its Scotch brands, as well as its investment in ShuiJingFang&#8217;s Swellfun, a premium brand of the fiery white spirit.</p>
<p>Diageo shares were down about 2 percent and ShuiJingFang shares were up about 2 percent.</p>
<h4>Reuters</h4>


Diageo Plc has proposed to increase its stake in Chinese baiju maker Sichuan Shujingfang Company to raise its stake to up to 60 per cent through a partial tender offer.

Diageo offers to raise stake up to 60% in China's Sichuan Shuijingfang

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Diageo offers to raise stake up to 60% in China's Sichuan Shuijingfang

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