MALLAYA MAKES A HOSTILE BID IN
SHAW WALLACE
The Vijay Mallya-controlled United Breweries
(UB) group has announced an open offer for a 25% stake in
Shaw Wallace & Company (SWC), the makers of Royal Challenge
and Director’s Special whisky, and the second-largest
spirit company after UB.
The open offer is priced at Rs 250 per share,
involving an outlay of Rs 300 crore, thus valuing the company
at Rs 1,200 crore.
An SWC spokesperson characterised the bid
as hostile. “According to our understanding, any bid
that does not come with the consent of the promoters or of
the incumbent management is a hostile bid. In this case, both
these provisos have been met and we therefore, deem it as
a hostile bid. We will deal with it appropriately,”
the spokesperson said.
In a tele-conference announcing the bid,
Mr Mallya insisted the bid was not an hostile one. ET had
reported on Mr Mallya’s plans for a hostile bid in its
edition dated February 10. The SWC scrip closed flat at Rs
231 after reaching a life-time high of Rs 242.
The promoters of SWC, the Chhabria family,
have a 55% stake in the company. The open offer is being made
through three UB companies - McDowell & Co, Phipson Distillery
and United Spirits.
