UB Group Chairman Vijay Mallya on Tuesday said the group was looking at the acquisition of a Chinese spirits company. Foreign companies have so far acquired only breweries but no one has yet taken over a Chinese spirits company.
The company was looking at acquiring brands in the European markets, Mallya said at a press conference after formalising the UB Group's acquisition of Shaw Wallace from the M R Chhabria family.
Mallya said the group would dilute a strategic stake of the merged entity towards the end of the calendar year. The company would also explore a possible public float, he said.
Mallya also announced the restructuring of the Shaw Wallace board. Apart from Mallya, the board will comprise S D Lalla, managing director, S R Gupte, executive vice-chairman, Ravi Nedungadi, president & CFO, C L Jain, Shrikant Ruparel and Mani Narayanaswamy.
The UB Group has paid a total of Rs 1,545 crore (Rs 15.45 billion) for the acquisition, which includes Rs 312 crore (Rs 3.12 billion) for a 25 per cent stake acquired through the open offer.
The UB Group - consisting of McDowell, Herbertsons, Triumph Distilleries and Shaw Wallace - has 140 brands. Of this, 12 sell more than one million cases a year. The combined spirit business of the UB group is the second largest in the world with annual sales exceeding 60 million cases.
According to Mallya, the group has started a restructuring process. While the integration of operations would commence shortly, the process of formal merger of the various entities would be kick-started in two months, he said.
"Professional managers have been mandated to draw a road map for a legal merger and creation of United Spirits," he added.
