Vangal, Kyndal not to counter UB bid for SWC

The Ramesh Vangal-Newbridge combine and the UK based Kyndal, which had made separate bids for acquiring the spirits business of Shaw Wallace & Co, have decided not to counter the open offer made by the UB group.

Sources close to the development said that neither Ramesh Vangal-Newbridge nor Kyndal had been intimated by McKinsey, Singapore, or by the Chhabria family about the status of the bids that they had made for the liquor business.

However, pending this, the parties do not intend to make any open offer to the shareholders of SWC, they added. According to Vijay Mallya, UB group had emerged as the highest bidder for Shaw Wallace Distilleries and had quoted a price of Rs 1,251 crore.

Since the UB group had made a open offer for 25 per cent of the equity capital of Shaw Wallace & Co, the holding company of the spirits business, other interested bidders are following a wait and watch policy.

"It all depends upon how much stake Mallya could garner through the open offer," sources said.

The Chhabrias have now decided to sell their 55 per cent holding in SWC and have invited bids for the same.

However, at this point it is unclear whether Ramesh Vangal-Newbridge combine and Kyndal would bid for the holding company.

UB group had already stated its interest for the 55 per cent stake in SWC.

Kyndal has a marketing and distribution alliance with Shaw Wallace Distilleries for selling the former's liquor brands in India. On the other hand, Ramesh Vangal, who brought Seagram's to India, is busy charting an aggressive plan in the liquor business through Mason & Summers.