UB likely to wrap up W&M buy by Jan
According to company officials, the decision to move ahead with the deal was taken at a recent board meeting in London. According to market information, the deal may be valued at 400 million pounds (around Rs 3500 crore).
Vijay K Rekhi, president & MD, United Spirits, said, “We are working on various option with Whyte & Mackay and all of you will hear the news one fine day.” He declined to comment further.
If and when this deal culminates, it will be one of the major acquisitions which Vijay Mallya would have mounted after his recent Rs 1,300 crore deal to take over arch-rival Shaw Wallace. The company currently has a net debt of Rs 1,300 crore.
According to company sources, the company will definitely leverage its balance sheet to part-fund this acquisition. “Besides this, we have the option of placing 18 per cent of our equity in the market which is under the USL Benefit Trust and Shaw Wallace.
Going by the current stock price of Rs 878, we can raise close to Rs 2,000 crore for any large acquisition such as Whyte & Mackay,” the officials highlighted.
If the deal moves forward, United Spirits will take on the global spirits industry by having strong brands such as Isle of Jura single malt, Dalmore Scotch besides Vladivar Vodka.
Headquartered in Glasgow, Scotland, the company employs over 600 staff on sites around Scotland and the UK. In the near future, the company will be adding its new all-purpose production facility in Grangemouth, Scotland to its other Scottish distilleries, which include the Isle of Jura (situated off the west coast of Scotland) and The Dalmore (based in Ross-shire).
According to information available Whyte & Mackay is one of Scotland’s most respected and famous whisky brands and has around 9 per cent the worldwide Scotch whisky market.
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