Mysore Breweries, a SABMiller Plc owned company in India, is raising debt worth Rs 150-200 crore to finance its 50:50 joint venture with Shaw Wallace Breweries, SABMiller India sources said.
Richard Rushton, managing director of SABMiller India, confirmed that the company is raising debt to finance the joint venture but did not specify the amount being raised.
He added that, according to the joint venture agreement entered into on Wednesday, SABMiller will invest $132.8 million (Rs 625 crore) into the merged entity.
This is the total book value of the net assets and the cash component in the joint venture company. Rushton added that, besides the cash component, the above amount includes the net book value of 50 per cent assets each of Mysore Breweries and Shaw Wallace Breweries.
Rushton did not disclose the cash component involved in the deal. SABMiller had earlier taken the clearance of the Foreign Investment Promotion Board to bring in Rs 600 crore into the country.
It has been on an acquisition spree and has already invested about Rs 140 crore in acquiring Narang Breweries (for about Rs 8 crore), Mysore Breweries (along with its subsidiary Pals Breweries at a total cost of Rs 108 crore) and a 74.82 per cent stake of the promoters in Rochees Breweries along with an open offer for the other 25.18 per cent.
On Wednesday, after over a year of negotiations, SABMiller Plc announced that it will take over management control of the Manu Chhabria family-controlled Shaw Wallace Breweries.
The two parties decided to combine their beer operations in India in the largest ever M&A deal in the liquor industry.
According to the deal, SABMiller
