United Spirits shines on getting nod to sell 32 brands to Inbrew
United Spirits is currently trading at Rs. 821.85, up by 43.20 points or 5.55% from its previous closing of Rs. 778.65 on the BSE.
The scrip opened at Rs. 800.50 and has touched a high and low of Rs. 826.30 and Rs. 780.30 respectively. So far 59481 shares were traded on the counter.
The BSE group 'B' stock of face value Rs. 2 has touched a 52 week high of Rs. 1019.75 on 09-Nov-2021 and a 52 week low of Rs. 597.10 on 28-May-2021.
Last one week high and low of the scrip stood at Rs. 826.30 and Rs. 729.00 respectively. The current market cap of the company is Rs. 58825.04 crore.
The promoters holding in the company stood at 56.73%, while Institutions and Non-Institutions held 28.14% and 15.12% respectively.
United Spirits has received approval to sale and franchise select brands to Inbrew Beverages (Inbrew). The company expects to complete the transaction by the end of the quarter ending September 30, 2022. The transaction does not include the McDowell’s or Director’s Special brands, which will be retained by United Spirits.
The company and Inbrew have executed definitive agreements for the sale of the entire business undertaking associated with 32 brands, including iconic brands Haywards, Old Tavern, White-Mischief, Honey Bee, Green Label and Romanov, for a total cash consideration of approximately Rs 820 crore, subject to customary adjustments.
The sale portfolio covers the entire business undertaking associated with the 32 brands including the related contracts, permits, intellectual property rights, associated employees, and a manufacturing facility. In addition, the company and Inbrew have entered into a 5-year franchise arrangement for 11 other brands, including Bagpiper. The company has also granted Inbrew a right, subject to certain conditions, to convert the fixed term franchise arrangement into one with perpetual rights to use and/or a call option to acquire the brands at a pre-agreed consideration. Certain ancillary agreements, including transitional services arrangements, in relation to the sale of the business undertaking and the franchise and option agreements have been approved to be executed between the company and Inbrew.
United Spirits is the largest spirits company in India and a flagship entity of UB group. It manufactures wide range of whisky, vodka, rum and other spirits.