Vijay Mallya`s United Spirits (USL) might acquire a minority stake in Bacardi, which will enable Bacardi to pursue acquisition opportunities in India, reports Economic Times.
Bacardi has revealed that the company will be interested in USL`s potential move for private placement of treasury stocks with a strategic partner, although currently nothing is at work with USL. Bacardi is looking at inorganic growth opportunities provided it is profitable and carries distribution muscle.
Earlier this year, Mallya had received unsolicited interests from several suitors for buying a small stake in USL. In January, UK-based spirit giant Diageo, makers of Johnnie Walker whiskies and Smirnoff vodka, had held talks with USL for acquiring the company`s stakes.
It is believed that USL could offload treasury stocks representing 10-12% stake in the company. The treasury stocks were generated from the overlapping capital of merging group companies, especially Shaw Wallace (SWC), into USL. USL could be open to offering shares at a price band of Rs 2,500-3,000 a share, which constitutes a significant premium to the prevailing market price.
Source: My Iris