Three global alcohol beverage firms have evinced interest for a stategic stake in the Rs 3,200 crore United Spirits, the spirits arm of UB Group.
UB Group chairman Vijay Mallya talking to the media in Bangalore, said that there is a minimum of three global players who are in discussions with him to pick up stake in United Spirits. "The interest is strategic of nature. We have a strong distribution network in India and global alcohol beverage players wanting to enter India are keen on this. In turn, we will look to leverage our partners' global network for our brands for an international footprint. The talks, including with Diageo, are on," he said, declining to outline a timeframe for this strategic move.
According to sources in the UB Group, Mallya, through various Trusts, holds around 13.7 million shares in Treasury stock, which may be the instrument for a strategic player to pick up stake in United Spirits. This 13.7 million shares total to around 13 per cent stake in United Spirits. "Majority of this treasury stock is expected to be leveraged for such a strategic sale," a senior official of UB Group noted. On the current market price of Rs 1,340 per equity share of United Spirits, this 13.7 million shares work out close to $1.8 billion.
The promoters of UB Group currently hold close to 37 per cent stake in United Spirits.
This move by United Spirits, comes close an year after, this firm successfully completed the $1.3 billion acquisition of Scottish whisky firm Whyte & Mackay.