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July 18, 2001
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Money > Business Headlines > Report July 18, 2001 |
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Strategic partner for Associated Breweries urgedReeba Zachariah IL&FS, which had been roped in by the Vijay Mallya-controlled UB group with a restructuring mandate, has recommended that the liquor group bring in a strategic partner in Associated Breweries & Distillers. Last year the group had picked up 65 per cent in ABD, the closely-held company owned by the Irani family, for over Rs 500 million. UB had snatched the deal from international beer behemoth South African Breweries, which was close to clinching the company. IL&FS has recommended that UB should look at reducing the stake to 51 per cent in favour of a strategic/financial partner. Such induction could be through the sale of existing ABD shares and/or a preferential issue in favour of the investor. Senior group executives said the recommendations had been considered but no decision has been taken. The officials did not specify whether the group formally accepted the recommendation. The group has kicked off a similar exercise with its beer flagship, United Breweries, where it proposes to offer a 26 per cent stake to a strategic partner through the issue of fresh shares. The partner in the beer company is yet to be finalised. IL&FS has mooted the induction of a partner in ABD, as ABD's association with the UB group, strong brands, manufacturing and distribution network, it may be possible to get a "high valuation for ABD's beer business". However, an exit route to such investor would need to be provided, IL&FS has said. Through the ABD acquisition, the UB group has added to its portfolio well known brands such as London Pilsner, London Diet, Maharaja Premium, London 2001 Plus, London 5001 Plus and San Miguel. However, relating to San Miguel, the UB group is facing some problems. The San Miguel brand was being sold in India by ABD as it had an exclusive licence for manufacturing and marketing with the Philippine-based San Miguel Corporation. Powered by YOU MAY ALSO WANT TO READ:
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