Tuesday, December 26, 2006

SABMiller may buy Mt Shivalik stake; EV seen at Rs. 300-350 crores

SABMiller Plc, the $14 bn beer giant, may buy a 50% stake or go for a complete buyout of Mt. Shivalik, the largest independent brewer in the country. The deal could carry an EV of Rs. 300-350 crores. Mt. Shivalik’s beer brand, Thunderbolt, has a 6% share of the growing domestic beer market. ABN-AMRO has the mandate from Mt. Shivalik to look for strategic options. Other global players like Carlsberg may also bid for the company.

Mt. Shivalik was recently offered $35-40 mn by Asia Pacific Breweries (APB), a Singapore-based arm of Heineken. Since then, its valuation has soared manifold. SABMiller had also placed a bid for majority stake in Mohan Meakins’ beer business after the promoter family invited business. However, the deal process has been in limbo for a while now. Earlier this year, SABMiller inked $120-million deal to buy the brand rights and beer assets of Foster’s in India giving it an additional 2% share of the domestic consumption.

With the acquisition of Mt. Shivalik, SABMiller can expect to see its market share jump to almost 44%, rather close to that of 45% of United Breweries. The Indian beer market has reported a growth of 25-30% in the current year.

More in The Economic Times article.

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