JAPAN/INDIA: Suntory Holdings silent on Radico Khaitan stake reports
Suntory's soft-drinks unit held an IPO this year
India's Economic Times, citing investment bankers close to the transaction, reported this morning that Suntory is expected to pay INR8.7bn (US$130.9m) for the part-share. The deal is likely to include a provision to buy a further 23% stake at a later date, the report suggested.
The Khaitan family could retain a stake in the distillery business and provide outsourcing support to Suntory, it was reported.
A spokesperson for the Japanese group told just-drinks today (3 September) it does not comment on media speculation.
Nobody from Radico Khaitan was available for comment.
In 2009, Radico reportedly wanted to sell a 26% stake in the company, with Suntory mentioned as a possible suitor. In 2011, the two companies signed a distribution and marketing deal to launch Suntory's Yamazaki 12 Year Old and Hibiki 17 Year Old whiskies in India.
Suntory last month boosted its acquisition funds after its food & soft-drinks unit was listed on the Tokyo Stock Exchange. The IPO raised US$3.9bn, and company executives have said the money will be used for strategic investments at home and abroad. Suntory's alcohol unit was not included in the stock market floatation.
Just before January is out, Ian Buxton is here for his first comment piece of 2014, and he's keen to consider what the fist big M&A transacion of the year will mean in the Scotch whisky industry....
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