Whyte & Mackay may be listed on the LSE: Mallya
UB Group on Monday says it might enlist the newly-acquired Scottish whisky maker, Whyte & Mackay on the London Stock Exchange (LSE).business Updated: May 21, 2007 23:55 IST
Liquor giant UB Group on Monday said it might enlist the newly-acquired Scottish whisky maker, Whyte & Mackay on the London Stock Exchange (LSE).
"This (the listing on the LSE) can happen," company Chairman Vijay Mallya told reporters in Mumbai when asked whether he was planning to enlist the company on the stock exchange to raise funds.
He, however, did not give any time-frame.
Mallya-promoted United Spirits had last week acquired Scottish whisky company Whyte & Mackay for 595 million pounds (Rs 4,819 crore), making the UB Group the second largest liquor company in the world.
He added that Whyte & Mackay would remain a 100 per cent subsidiary of the UB Group and he has no plans to change the management.
"We should allow it to operate on its own and I don't see any change required in the current management," Mallya said.
Mallya said that the acquisition of Whyte and Mackay was required to make scotch whisky available in India, China and the Gulf.
Mallya said that the acquisition would be financed through loans from ICICI Bank (USD 325 million), Citibank (USD 310 million) and through sale of United Spirits treasury stocks.
"We will pay it off prematurely," Mallya said. He had earlier stated that the earnings of Whyte and Mackay would cover the cost of acquisition in the near future.
Whyte and Mackay's annual operating income is now approximately 50 million pounds and is expected to grow at 20 per cent per annum.