In a bid to make the company’s valuation attractive for foreign equity investment, McDowell & Company Ltd has amalgamated its spirits businesses and rechristened it as United Spirits Ltd.As a result of this consolidation, eight of the group companies in the business of spirits will be amalgamated. Subsequent to the merger, the promoter stake in the company will have a marginal change to 42.35 per cent from 42.47 per cent. The board has also approved the demerger of the investment business into McDowell India Spirits Ltd. UB Group Chairman Vijay Mallya said, ‘‘The combined McDowell will have sales of over Rs 3,000 crore in FY06 compared to Rs 1,720 crore recorded in FY05 on a standalone basis. Consolidated EBIDTA for the year is expected to be about Rs 250 crore to Rs 275 crore as against Rs 9 crore in the previous year.’’ Mallya confirmed that the company has received EoIs from multiple international investors for amount ranging from $100 million to $200 million at an attractive valution. The proposals will be considered by the board at an appropriate time, he added.
