United Spirits gets nod to raise funds

United Spirits has received the shareholders' approval to borrow a maximum of Rs 10,000 crore through various instruments from domestic as well as international bankers.

Industry sources said the move was aimed at raising resources to acquire the Glasgow-based distillers Whyte & Mackay for nearly Rs 4,350 crore.

The Rs 3,500 crore company, a part of the Vijay Mallya-controlled UB group, has debt of around Rs 1,400 crore as of December 31, 2006.

Industry sources said the company had organised funds from a host of banks, including Standard Chartered and UBS, to fund the acquisition which might be announced next week.

They also said the promoters might not dilute stake in the company, as speculated in the market, for financing the deal which will be the largest buyout by an Indian company abroad.

Tata Tea's acquisition of Energy Brands for $677 million is so far the largest overseas buyout by an Indian company.

Sources said United Spirts would sweeten its previous offer of £475 million to seal the deal. The previous offer, made in November, was rejected by Whyte & Mackay's South African-born owners, Vivien Imerman and his brother-in-law Robert Tchenguiz.

Mallya is expected to retain the services of Whyte &Mackay group Managing Director Bob Brannan.

The UB group had made an abortive attempt to acquire Taittinger, the world's sixth largest champagne company, for £400 million last year.

Whyte & Mackay's brands include Whyte & Mackay blended Scotch whisky, Dalmore single malt whisky and Vladivar vodka.

This acquisition will mark the end of any significant whisky group other than Edrington "� owner of Famous Grouse, Macallan and Highland Park "� being controlled from a Scottish headquarters.