United Spirits Ltd (USL) has bought a 54.69% stake in promoters’ equity in Hyderabad-based Pioneer Distilleries Ltd for Rs.73.95 crore. USL bought 7,322,280 shares in Pioneer Distilleries at Rs.101 each from its promoters. USL will make an open offer for an additional 20% stake held by minority shareholders.
The acquisition comes at a time when USL is exploring ways of shoring up its distillation capacity to gain better control over supplies of extra-neutral alcohol (ENA), the primary ingredient in Indian made foreign liquor (IMFL)—as locally made spirits such as whisky, rum and brandy are classified.
In an unrelated development, United Breweries Ltd, the brewery unit of the UB Group, announced the merger of Millenium Alcobev Breweries and its subsidiary companies into UBL, in a move to consolidate the group’s beer business in
Currently, loan on Millenium’s book is around Rs.248 crore after Rs.41 crore were converted into non-voting equity shares in February 2007. But the consolidation will definitely benefit the company in terms of funding and operations.crackcrack
Company Name | CMP |
---|---|
United Spirits | 1181.25 |
United Breweries | 1880.35 |
Radico Khaitan | 1693.75 |
Globus Spirits | 777.85 |
Tilaknagar Inds | 239.10 |
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