BUSINESS TODAY-ERNST & YOUNG

Deal Watch
Every month, we bring you a listing of the biggest deals struck by Indian companies in India and abroad. Our partner: global professional services firm Ernst & Young. Here are the deals that were struck in May 2007.

DEALTRACKER
DEAL OF THE MONTH

Deal Particulars: The UB Group has acquired a 100-per cent stake in the Glasgow-based Whyte & Mackay (W&M) in an all-cash-deal amounting to 595 million (Rs 4,783 crore). The Group will acquire all the shares of W&M held by Chairman Vivian Imerman and other investors. W&M is currently one of the largest whisky manufacturers in the world, with four different producing units in Scotland in addition to distilleries located in Scotland and other parts of Europe. W&M has popular brands like Whyte & Mackay scotch whisky, Highland Malt, Isle of Jura Single Malt Whisky, Glayva Liqueur and Dalmore Single Malt. This transaction is also the largest acquisition deal in the Indian spirits and beverage industry. Impact Analysis: The transaction represents one of the most aggressive moves by the UB Group in the spirits industry. The transaction achieves the dual objectives of geographical and product diversification. Access to the vast distribution network of W&M will provide the UB Group with access to the lucrative EU markets for some of its own brands. From a portfolio perspective, it significantly strengthens the position of the company by bringing premium whisky brands within its fold. This will buttress the exisiting portfolio of the Group by providing access to high-end brands which enjoy higher margins. In addition, W&Ms inventory of 115 million litres of Scotch (valued at 350 million or Rs 2,835 crore) could be very handy, with Scotch gaining popularity in economies like India due to higher incomes and changing lifestyles.
ACQUIRER INDUSTRY TYPE DEAL VALUE (Rs crore) STAKE

TARGET

Glaceau (Tata Teas Stake) Whyte & Mackay ACC Intermet Europe Vipul Sundaram Home Finance Mankind Pharma Simon Golub & Sons Defiance Testing and Engineering Services (DTE) Detroit Engineered Products (US) Argent Independent Steel Avestha Gengraine Technologies Pvt. (Avesthagen) Pylania (Switzerland) CBK-MPR Pharma, Poland Empire Rubber (Australia) NetDevices Sarabhai Zydus Animal Health IceNet

Coca-Cola Co United Spirits Holcim Sakthi Auto Component Wachovia Corporation (US) Union de Credit pour le Batiment SA (UCB), ChrysCapital Shrenuj & Company Ashok Leyland Autoline Industries JSW Steel New York Life Investment Management India Fund Kamla Dials and Devices (KKDL) Lambda Therapeutic Research Motherson Elastomers and Motherson Investment Alcatel-Lucent Cadila Healthcare YOU Telecom

Beverages Liquor Cement Auto components Real Estate Housing finance Pharmaceuticals Consumer durables Automobiles Automobiles Steel Pharmaceuticals Consumer products Pharmaceuticals Auto components Computer Software Healthcare Internet

Acquisition Acquisition Investment Acquisition Investment Investment Investment Acquisition Acquisition Acquisition Acquisition Investment Acquisition Investment Acquisition Acquisition Acquisition Acquisition

4,920 4,783 640 533 234 197 98 90 70 67 31 23 11 10 Undisclosed Undisclosed Undisclosed Undisclosed

30% 100% 3% 100% 15% 50% Undisclosed 85% 100% 51% 100% Undisclosed 100% 76% 100% 100% 50% 100%

*Includes only M&A, private equtiy and brand sale transactions

Ernst & Young is a leading M&A advisor in India. While every care has been taken to compile this data, it is based on media reports, company announcements and other secondary research. Any decision on the basis of the above mentioned information should be taken only after professional advice. Business Today or Ernst & Young do not undertake any responsibility in regard to any such decision.

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BUSINESS TODAY

JUNE 17

2007