UB Group and Jumbo announce Rs.1300 Crore Deal
the UB Group will have a significant share of the Indian Spirits business with annual sales of approximately 60 million cases, which should place it in the 2nd rank amongst global spirits companies.
22/03/05 McDowell & Co. Limited (McD) and Jumbo World Holdings Limited (JWHL) have reached a Binding Agreement for McD and its Associates to acquire indirect control of upto a maximum of 54.54% of the shares of Shaw Wallace & Co. Limited (SWCL) from JWHL. With this transaction, the UB Group will have a significant share of the Indian Spirits business with annual sales of approximately 60 million cases, which should place it in the 2nd rank amongst global spirits companies.
The agreed purchase price imputes a value of Rs.325 per SWC share, which includes a fee for worldwide non-compete undertakings.
In related transactions, McD also agreed to purchase certain other affiliates of the Jumbo Group who are, inter-alia, engaged in the distribution of spirits in India and globally.
The total consideration payable for all acquisitions amounts to US$ 300 million, or approximately Rs. 1,300 crore.
SWC is primarily engaged in the Spirits business comprising both IMFL and country liquor. Additionally, it has holdings in other businesses. Its majority control of Narmada Gelatines Ltd., a listed company, will be divested to a Jumbo affiliate as soon as practicable so as to maintain Jumbo's management control.
With this transaction, the UB Group will have a significant share of the Indian Spirits business with annual sales of approximately 60 million cases, which should place it in the 2nd rank amongst global spirits companies.
