UNITED SPIRITS LTD. - Updates

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UNITED SPIRITS LTD. - Updates

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31 Oct 2014
With to the earlier announcement on May 09, 2014 wherein the Board of Directors of the Company of their meeting held on May 09, 2014 recommended to the Board of Directors of the Company's indirect wholly owned subsidiary United Spirits (Great Britain) Limited, to consider the sale of the entire issued share capital of Whyte and Mackay Group Limited (Whyte and MacKay or "Seller) to Emperador UK Limited, a subsidiary of Emperador Inc., for cash at an enterprise value of 430 million.<br/><br/>United Spirits Ltd has now informed BSE that the completion on October 31, 2014 of the sale of the entire issued share capital of Whyte and Mackay held by the Company's indirect wholly owned subsidiary in UK viz., United Spirits (Great Britain) Limited to Emperador UK Limited, a subsidiary of Emperador, Inc ("Emperador"), for an enterprise value of 430 million. With this, Whyte and Mackay Group Ltd and its 45 subsidiaries will cease to be subsidiaries of United Spirits Ltd.<br/><br/>Part of the proceeds from the sole would be used to repay Whyte and Mackay acquisition debt amounting to GBP 370 million, resulting in significantly deleveraged Consolidated Balance Sheet and savings in related interest cost. Post adjustment of Pension Deficit, repayment of debt and movements in Net Working Capital, the seller will get residue funds of GBP 32 million. A Retention Deposit of GBP 10 million is retained for any claims for a period of 7 months post completion. The sale will result in significant write off of loan amounts recoverable by the Company from its overseas wholly owned subsidiary of Rs. 3,700 crores approximately (out of which Rs.3,616.45 crores has been provided as of March 31, 2014).<br/><br/>As part of the transaction, Emperador has committed to supply United Spirits Limited with Scotch whisky for the next 3 years, thereby securing the short - medium term needs of the Company.<br/><br/>The disposal is pursuant to a commitment given to the UK Competition and Markets Authority by Diageo Plc.<br/><br/>The Company was advised by Rothschild, Standard Chartered Bank, Rabo Bank and Herbert Smith Freehills acted as legal advisers.
View all announcements for UNITED SPIRITS LTD.	Source: BSE India

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