United Breweries Group Chairman Vijay Mallya said on Friday his group was eyeing acquisition of a large Scottish whiskey company, with an enterprise value of about Rs 4,000 crore (Rs 40 billion).
"I am targeting the acquisition of a large Scottish whiskey company," he said while speaking at the HT Leadership Summit in New Delhi.
Although Mallya did not name the company, the firm in question is said to be Glasgow-based Scotch major Whyte & Mackay. He said negotiations of the deal was at an early stage.
"The enterprise value of the company is Rs 4,000 crore. We are only negotiating and nothing has been finalised," he said, adding the enterprise value has been suggested by their merchant bankers.
"It is worth that much", he said commenting on the value of the company. Mallya's view comes in the midst of reports that takeover talks between UB Group and Whyte Mackay have been stalled over difference on valuation.
According to reports, Whyte Mackay bosses value the company at Rs 5,077.88 crore (Rs 50.77 billion). Mallya said he is facing opposition from the local associations.
"We are facing a lot of resistance due to Scotch whiskey associations (on the acquisition bid)," he added. Whyte & Mackay earlier had a marketing and distribution arrangement with Shaw Wallace Company, now part of the UB Group.
The UK-based company's core brands include Whyte & Mackay Scotch Whiskey, Dalmore Single Highland Malt, Glavya Liquer and Isle of Jura Malt Whiskey.
Whyte Mackay represents the interests of other trans-national spirits companies such as Fortune Brands and V&S Sprit in markets across the world.
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