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Boby Kurian

Bangalore , March 6

THE Newbridge-Ramesh Vangal combine has opted out of the bidding process for Shaw Wallace and Co Ltd (SWC).

The decision paves way for a straight contest between the UB Group Chairman, Mr Vijay Mallya, and Ms Komal Chhabria Wazir, the second daughter of the late Manu Chhabria, to wrest control of the country's second largest spirits company.

The Newbridge-Vangal consortium confirmed their exit, which was rumoured for a while, and blamed it on "complicated deal making procedures."

Another bidder, the UK-based Whyte and Mackay, denied speculation about its formal exit from the bidding arena, but said it "will watch the developments from the sidelines."

The Chhabria estate managed Jumbo Group, which controls SWC, had mandated McKinsey Singapore to call for bids from potential suitors for the spirits business in October last year. The UB Group emerged as the highest bidder but the sale process went into limbo, as the Jumbo Group could not unanimously decide on a preferred bidder.

Meanwhile, Ms Wazir, who currently manages SWC as its Executive Director, on behalf of the Chhabria family, expressed her interest to acquire the business, making her Mr Mallya's principal opponent .

Sources said her mother, Ms Vidya Manohar Chhabria, Chairperson of the Jumbo Group, told Ms Wazir that she had to match the highest bidder if she wished to keep the business.

The Newbridge-Vangal combine's move comes even as Jumbo World Holdings is scheduled to meet on March 10 to push ahead with the sale process.

Sources said the bidding process was on track despite Mr Mallya announcing an open offer to SWC minority shareholders to garner up to 25 per cent of the outstanding capital of the company.

Incidentally, Jumbo, which dubbed Mr Mallya's open offer as a hostile bid, has, however, continued to engage UB in serious talks. This ascertains the speculation that UB has succeeded in drumming up support for its bid from certain quarters within Jumbo.

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