United Spirits receives shareholder nod to raise $225 million through FCCB
21 Jan 2012
United Spirits, a part of Vijay Mallya-led United Breweries yesterday received shareholders' approval to raise $225 million through the FCCB (foreign currency convertible bonds) route, with $50 million of it being the green-shoe option.
"The members have unanimously approved the special resolution for issue of FCCBs, convertible into equity shares, for an amount not exceeding $175 Million with a green shoe option of an aggregate sum not exceeding $50 Million," United Spirits Ltd (USL) said in a filing to the BSE.
In an interaction with reporters after an extraordinary general meeting, Ashok Capoor, president and managing director, said the FCCBs would be raised to repay 'some foreign debt' and fund 'capital expenditure,' which may be for certain acquisitions.
Regarding the time-frame, he said the process of raising the funds would start as soon as possible. He further clarified that despite some reports to the contrary, the entire funding would be used for the company.
The debt of Whyte & Mackay as of now stood at around £375 million, he said.
Scotch whisky maker Whyte & Mackay was acquired by United Breweries for around £595 million pound in 2007.
The company had said in an earlier filing that it intended to raise the amount to lower the high-cost debt and to consequently improve both profits and EPS (Earnings Per Share).
Standard Chartered Bank, Rabo Bank along with DBS Bank have been appointed as advisors to the issue. The proposal had been approved by the board of directors during their meeting held on 21 December, 2011.
