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UB wraps up SWC purchase

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Our Corporate Bureau Mumbai
Last Updated : Jun 14 2013 | 4:01 PM IST
UB will dilute a strategic stake of the merged entity; SWC board will be restructured.
 
UB Group Chairman Vijay Mallya today said the group was looking at the acquisition of a Chinese spirits company. Foreign companies have so far acquired only breweries but no one has yet taken over a Chinese spirits company.
 
The company was looking at acquiring brands in the European markets, Mallya said at a press conference after formalising the UB Group's acquisition of Shaw Wallace from the M R Chhabria family.
 
Mallya said the group would dilute a strategic stake of the merged entity towards the end of the calendar year. The company would also explore a possible public float, he said.
 
Mallya also announced the restructuring of the Shaw Wallace board. Apart from Mallya, the board will comprise S D Lalla, managing director, S R Gupte, executive vice-chairman, Ravi Nedungadi, president & CFO, C L Jain, Shrikant Ruparel and Mani Narayanaswamy.
 
The UB Group has paid a total of Rs 1,545 crore for the acquisition, which includes Rs 312 crore for a 25 per cent stake acquired through the open offer.
 
The UB Group "" consisting of McDowell, Herbertsons, Triumph Distilleries and Shaw Wallace "" has 140 brands. Of this, 12 sell more than one million cases a year. The combined spirit business of the UB group is the second largest in the world with annual sales exceeding 60 million cases.
 
According to Mallya, the group has started a restructuring process. While the integration of operations would commence shortly, the process of formal merger of the various entities would be kick-started in two months, he said.
 
"Professional managers have been mandated to draw a road map for a legal merger and creation of United Spirits," he added.

 

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