UB begins Whyte & Mackay due diligence

The Vijay Mallya-promoted UB group has started examining the books of the Scotland-based Whyte & Mackay as a precursor to acquiring the foreign company for the reported  pound 550 million (Rs 4,700 crore).

P A Murali, chief financial officer, United Spirits, confirmed that the due diligence was on. United Spirits will be the UB group's investment vehicle for the acquisition.

"We are in various stages of due diligence and it is a process, which cannot be worked towards a deadline. It all depends on what information we want and what Whyte & Mackay shares," Murali said.

He, however, declined to confirm the valuation of the proposed deal.

Market sources said the deal would be signed within four weeks on completion of the due diligence.

Senior executives at United Spirits said the entire funding for the deal had been tied up. "Funds are not a problem for us. It will be a mix of various instruments and we are ready for it," a company executive said.

United Spirits recently got shareholders' approval to borrow a maximum of Rs 10,000 crore (Rs 100 billion) through various instruments from domestic as well as international bankers.

The Rs 3,500-crore (Rs 35 billion) company has a debt of around Rs 1,400 crore (Rs 14 billion) as on December 31, 2006.

Whyte & Mackay's brands include Whyte & Mackay blended Scotch whisky, Dalmore single-malt whisky and Vladivar vodka.