Bringing you live news and features since 2013
Bringing you news, views and analysis since 2013

2393

Comment: KKR sees value in Indian spirits

RELATED TOPICS​

US private equity major Kohlberg Kravis Roberts is reported to be interested in picking up a minority stake in Vijay Mallya’s United Spirits group, primarily by acquiring treasury stocks t

US private equity major Kohlberg Kravis Roberts is reported to be interested in picking up a minority stake in Vijay Mallya’s United Spirits group, primarily by acquiring treasury stocks that would give it a 14.8 per cent stake in the Indian company.

The world’s third-largest liquor marketer has already seen interest from international market leaders Diageo and Bacardi. In February, United Spirits chairman Mallya expressed confidence that Diageo would go ahead with its acquisition of up to 14.9 per cent of the firm, but he apparent remains keen to explore the possibility of a transaction involving financial investors even as talks continue with trade suitors.

KKR’s interest reflects widespread optimism about the growth prospects of India’s alcoholic beverage sector and in particular of United Spirits, the industry leader with a market share exceeding 55 per cent.

The private equity move comes at a time when United Spirits is looking at the option of issuing fresh shares rather than selling treasury stock. This could give the group more leverage in its discussions with potential investors over the sale of a stake that would allow it to reduce its debt burden.

It should be noted that the head of KKR’s Indian operations is none other than Sanjay Nayar, the former head of Citi India. Citi has been one of United Spirits leading bankers, providing financing for its acquisition of Whyte & Mackay in 2007.

Latest News

Pantheon, a specialist global private markets investor, and iCapital, the global fintech platform, have announced..
Data from Houlihan Lokey’s MidCapMonitor showed that UK sponsor-backed financing activity significantly increased YoY in..
Irish domiciled funds surpassed EUR4.3 trillion AuM (Assets under Management) at end-March 2024, a 15..

Related Articles

Global ESG Investing
On May 15 Florida’s Republican Governor Ron DeSantis signed legislation that furthers his ongoing campaign to oppose the role of climate change and ESG factors in state policymaking...
On May 15 Florida’s Republican Governor Ron DeSantis signed legislation that furthers his ongoing campaign to oppose the role of..
Trends
The trend to buyout among the UK’s smaller defined benefit (DB) schemes continues with a slew of new sub GBP100 million deals announced this month alone...
The trend to buyout among the UK’s smaller defined benefit (DB) schemes continues with a slew of new sub GBP100..
Different flavours
In what is believed to be the first survey of its kind in the UK market, Nedgroup Investments, the investment-led, multi-boutique global asset manager with over USD20 billion under management, recently undertook a survey with 204 UK investment professionals, seeking insights into their perceptions and attitudes towards boutique asset managers...
In what is believed to be the first survey of its kind in the UK market, Nedgroup Investments, the investment-led,..
UK map
UK local government pension schemes (LGPS) are leading the charge on investment in private markets issuing tenders set to be worth billions of pounds in the coming years...
UK local government pension schemes (LGPS) are leading the charge on investment in private markets issuing tenders set to be..
Subscribe to the Institutional Asset Manager newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by