The Rs 4,000 crore United Spirits will be merging Shaw Wallace with itself. United Spirits, a part of the UB Group, had acquired Shaw Wallace for around Rs 1,300 crore in mid-2005 .
UB Group President and Chief Financial Officer Ravi Nedungadi said that the merger would begin soon. The move will add another Rs 60 crore to United Spirits’ bottomline of close to Rs 500 crore and around Rs 350 crore to the topline.He also said that Whyte & Mackay, which was recently acquired for around $1.2 billion, would stay on as a subsidiary.
United Spirits is currently the third-largest distiller in the world with sales of over 66 million cases powered by 15 millionaire brands. Brands from Shaw Wallace, which operate in the volume segment, have contributed to this growth.
Read more in The Business Standard article.
Showing posts with label United Spirits. Show all posts
Showing posts with label United Spirits. Show all posts
Thursday, November 29, 2007
Monday, November 12, 2007
Diageo may buy into United Spirits
Global drinks leader Diageo is said to have evinced interest in picking up a minority stake in Vijay Mallya’s liquor flagship United Spirits (USL). Sources said talks exploring the possibility of Diageo buying around 10-13% in the Indian spirits behemoth, the world’s third-largest by volume, for $500-600 million have taken place.
Sources said Diageo was interested in buying into USL with the latter’s enterprise valuation pegged at over $5 billion. It is believed that the domestic giant may be open to placing a small stake with Diageo without ceding management control. This could see Diageo entering as a financial investor, for now, at least. In many ways, observers say, the move is reminiscent of Vodafone’s buy into Airtel some years back.
Read more in The Economic Times article.
Monday, June 25, 2007
United Spirits allots shares upon FCCB conversion
Vijay Mallya-led United Spirits on Monday said it has allotted over 5.79 lakh equity shares upon conversion of 10,190 Foreign Currency Convertible Bonds (FCCBs) for Rs 45.27 crore.
The committee of directors alloted 5,79,692 equity shares of Rs 10 each, upon conversion of 10,190 bonds at Rs 781 per share, United Spirits said in a communique to the Bombay Stock Exchange (BSE).
The FCCBs were converted at a fixed rate of exchange of Rs 44.43 per dollar.Earlier on March 24, the company had launched an FCCB issue of 100 million dollar due on 2011. Of these, United Spirits has received conversion notices in respect of 10,190 bonds aggregating to 10,190,000 dollar from the bond holders.
Consequent to the allotment, the total issued and paid-up equity capital of the company stands increased to Rs 95.93 crore from Rs 95.36 crore.Shares of the company were trading at Rs 1,222, up 3.30 per cent on BSE in early morning trade.
The committee of directors alloted 5,79,692 equity shares of Rs 10 each, upon conversion of 10,190 bonds at Rs 781 per share, United Spirits said in a communique to the Bombay Stock Exchange (BSE).
The FCCBs were converted at a fixed rate of exchange of Rs 44.43 per dollar.Earlier on March 24, the company had launched an FCCB issue of 100 million dollar due on 2011. Of these, United Spirits has received conversion notices in respect of 10,190 bonds aggregating to 10,190,000 dollar from the bond holders.
Consequent to the allotment, the total issued and paid-up equity capital of the company stands increased to Rs 95.93 crore from Rs 95.36 crore.Shares of the company were trading at Rs 1,222, up 3.30 per cent on BSE in early morning trade.
Thursday, May 17, 2007
Vijay Mallya downs Whyte & Mackay
Liquor baron Vijay Mallya today put the cork on months of speculation by announcing the purchase of Glasgow-based Scotch whisky distiller Whyte & Mackay for £595 million (Rs 4,784 crore).
Mallya’s United Spirits, India’s largest liquor firm and the flagship of his UB Group, will now own all the shares held by W&M Chairman Vivian Immerman and other investors.
That will give the Indian company an annual output of 75 million cases, and it will remain the third largest in the world in terms of number of cases produced, behind Diageo and Pernod-Ricard SA.
Mallya, chairman, UB Group, said at a video conference from Glasgow that the 140 brands owned by the company, including Whyte & Mackay, Isle of Jura, The Dalmore and Vladivar vodka, had been independently valued at £170-190 million.
The distiller’s brands will be sold in India, China and Russia. Besides, the firm’s Scotch will be used to blend whisky in India.
The deal is estimated at 21 times historical EBITDA (earnings before interest, tax and depreciation) for the year ended September 2006, a premium to those of peers Diageo and Pernod-Ricard.
Analysts, however, believe the premium is justified and inevitable, given the growing demand for Scotch whisky worldwide and the fact that not too many distillers are up for sale.
The combined turnover of United Spirits and Whyte & Mackay in the current year may touch Rs 4,700 crore and the combined operating profit, Rs 750 crore.
The deal will be financed through a combination of borrowings from Citibank (£310 million) and ICICI Bank (£ 325 million). A part of this debt, £325 million, is to be raised in Whyte & Mackay without recourse to United Spirits.
Read more in The Business Standard article.
Mallya’s United Spirits, India’s largest liquor firm and the flagship of his UB Group, will now own all the shares held by W&M Chairman Vivian Immerman and other investors.
That will give the Indian company an annual output of 75 million cases, and it will remain the third largest in the world in terms of number of cases produced, behind Diageo and Pernod-Ricard SA.
Mallya, chairman, UB Group, said at a video conference from Glasgow that the 140 brands owned by the company, including Whyte & Mackay, Isle of Jura, The Dalmore and Vladivar vodka, had been independently valued at £170-190 million.
The distiller’s brands will be sold in India, China and Russia. Besides, the firm’s Scotch will be used to blend whisky in India.
The deal is estimated at 21 times historical EBITDA (earnings before interest, tax and depreciation) for the year ended September 2006, a premium to those of peers Diageo and Pernod-Ricard.
Analysts, however, believe the premium is justified and inevitable, given the growing demand for Scotch whisky worldwide and the fact that not too many distillers are up for sale.
The combined turnover of United Spirits and Whyte & Mackay in the current year may touch Rs 4,700 crore and the combined operating profit, Rs 750 crore.
The deal will be financed through a combination of borrowings from Citibank (£310 million) and ICICI Bank (£ 325 million). A part of this debt, £325 million, is to be raised in Whyte & Mackay without recourse to United Spirits.
Read more in The Business Standard article.
Subscribe to:
Posts (Atom)
