Financial Daily from THE HINDU group of publications
Friday, Jun 17, 2005
Financial Daily from THE HINDU group of publications Friday, Jun 17, 2005 |
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Corporate
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Announcements McDowell to cut SWC debt by Rs 460 cr Our Bureau
Mumbai , June 16 McDOWELL & Company on Thursday said it had commenced the process of debt reduction following the financial closure of the Shaw Wallace and Co (SWC) acquisition. The overall debt of Rs 1,545 crore, which is the acquisition cost of SWC, will be reduced by about Rs 460 crore. A part of the proceeds from the sale of non-spirits assets of SWC has been used towards reduction of the acquisition cost. The company also informed that SWC will own 95 per cent of Shaw Wallace Distilleries Ltd, which is the principal operating company for the spirits business of SWC. "In keeping with the UB Group's commitment to reorganise businesses in the best interests of all stakeholders the present move to bring Primo Distributors under SWC will enable minority shareholders to fully participate in the business of Shaw Wallace Distilleries Ltd," a release said. Our Bangalore bureau adds: Mr Ravi Nedungadi, President & CFO of UB Group, said the group had raised about $180 million by way of sale of non-spirits assets, which included Narmada Gelatines, Shaw Wallace Agrochemicals and a 50 per cent stake in a brewing joint venture with global beer giant SABMiller. The individual value of these separate sales were not disclosed even though sources said bulk of the cash came from the stake sale in the beer joint venture. The UB Group had completed the acquisition of SWC following the financial closure on June 14. The combination of the UB spirits business comprising McDowell, Herbertsons and Triumph Distillers, along with SWC, creates a compelling global spirits behemoth with sales exceeding 55 million cases annually. It also gives UB's spirits empire control over 50 per cent of the Indian Made Foreign Liquor (IMFL) market, one of the fastest expanding spirits segments anywhere in the world.
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