| Indian liquor baron Vijay Mallya's UB Group has confirmed that they are studying the books of scotch-whisky maker Whyte and Mackay in a possible takeover deal worth 550 million pounds (1.08 billion dollars).
"The due diligence process is under way," P.A. Murali, chief financial officer of UB Spirits Ltd., India 's largest distiller, told AFP in Bangalore . He added that it would be "speculative" to comment on the likely date of an agreement being signed.
The acquisition would help the 52-year-old Mallya, a cigar-puffing businessman known for his flamboyant lifestyle such as an airline that bears the name of his company's flagship beer called Kingfisher, finally penetrate a market where he has faced resistance.
The Scotch Whisky Association of Britain has blocked his attempt to sell Indian-made spirits in Europe , arguing his products were distilled from molasses and not malt and can't be described as whisky, a stance Mallya said was akin to "commercial imperialism."
UB Group was also forced to shelve plans to buy French champagne group Taittinger, for which it offered nearly 660 million dollars, after rival bidders upped the ante.
"If UB Group buys Whyte and Mackay, it will gain a foothold in Europe," said Anjan Roy, an economist at the Federation of Indian Chambers of Commerce and Industry, or FICCI, in New Delhi .
The Indian company was founded by Scotsman Thomas Leishman in 1915 to make bulk beer for British troops that was transported in huge barrels known as "hogsheads."
Vijay Mallya's father Vittal at age 22 became the first Indian director of the company 13 days after India gained independence on August 15, 1947.
The company said in January that it was in talks to acquire Glasgow-based Whyte and Mackay but refused to disclose details.
The Hindustan Times, in a report from London , Wednesday cited unnamed people close to Mallya as saying the deal had been sealed for 550 million pounds and that "the formalities would be completed within a fortnight."
"It's difficult to specify a date but we are looking at closing out the deal as soon as possible if all things meet our requirements," a UB Group corporate finance executive who requested anonymity told AFP in Bangalore.
The acquisition would add W and M scotch whisky, Vladivar vodka and Jura single-malt whisky to UB Group's stable, which includes Kingfisher beer, Bagpiper, Director's Special and McDowell's No. 1 whiskies and McDowell's Celebration rum.
Billionaire Mallya, an ostentatious public figure sometimes referred to as India 's Richard Branson, is also known for his lavish parties, luxury automobiles and luxury yacht, the Indian Empress.
The proposed acquisition would be the latest big-ticket purchase by an Indian tycoon overseas.
Ratan Tata's Tata Steel in January bid seven billion pounds to buy Anglo-Dutch steelmaker Corus Group and Kumar Mangalam Birla's Hindalco said this month it agreed to purchase US-based aluminium maker Novelis for six billion dollars.
Source: http://www.afp.com |
