Financial Daily from THE HINDU group of publications
Friday, Sep 23, 2005
Financial Daily from THE HINDU group of publications Friday, Sep 23, 2005 |
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Corporate
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Outlook Mallya unveils road map to form United Spirits Our Bureau
Mumbai , Sept. 22 THE road-map for integration and consolidation towards the creation of United Spirits Ltd was unveiled by liquor baron Mr Vijay Mallya here on Thursday. Giving details of this "complex exercise", he confirmed that the company was looking to off-load equity and would evaluate the proposals at an appropriate time. He said that the board of McDowell & Co had given its approval to the amalgamation of eight spirit companies into McDowell & Co Ltd, which would be later re-born as United Spirits Ltd. The date of merger is July 2005. The board also approved the de-merger of the investment business into McDowell India Spirits Ltd (MISL), from July 1, 2005. And shareholders would be given one equity share of McDowell India Spirits for five shares held in McDowell & Co. United Spirits is expected to end the fiscal 2006 with a combined sales of Rs 3,000 crore, as compared to Rs 1,720 crore in the previous year, he said. UB Holdings will directly hold 43.2 per cent in United Spirits, besides a 6.7 per cent indirect holding through trusts. Shaw Wallace will hold 13.6 per cent in United Spirits, he said. Putting a lid on speculation regarding foreign equity participation, he said that there were several expressions of interest from multiple international investors for investments ranging from $100-200 million at an attractive valuation. He indicated that he would like to hold at least 40 per cent in United Spirits, if the company decided to offload equity in future. UBHL will hold 42.47 per cent equity in McDowell Holdings Ltd and the rest would be with the public, he said. The process of operational integration was being facilitated by Accenture, he said. The board also approved the scheme for merger of Asian Opportunities and Investments Ltd and Zelinka Ltd into the company. Since AOIL and Zelinka are directly/indirectly wholly-owned subsidiaries of the company, no shares would be issued in consideration for the merger, the company said. Cos amalgamated into McDowell
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