Mallya Closing In On The Whyte & Mackay Deal

February 2007

The protracted takeover of Whyte & Mackay appeared to be drawing to a close last night after reports that a price had been agreed for the Glasgow-based company. Vijay Mallya, the Indian billionaire who has been in negotiations to buy the company for several months, is understood to have raised his offer to around £550m, a price acceptable to Whyte & Mackay's boss, Vivian Imerman. Mallya initially offered £475m for the firm in November, a price that was a long way off Imerman's value of £600m.

Imerman declined to comment, saying that he was in hospital undergoing a minor operation. But Mallya told Scotland on Sunday that the gap between the two parties had narrowed. He said: "Negotiations on Whyte & Mackay continue in a positive sense. Progress is being made and the gap between the previous positions of both parties is narrowing." A final deal will be subject to a process of due diligence, but it is believed it could be wrapped up by the end of March.

By acquiring Whyte & Mackay, which owns Isle of Jura single malt and Dalmore Scotch, Mallya would have two premium Scotch brands that could be distributed through his UB Group in India. He also wants to buy a UK distiller to use its distribution network to sell his whiskies in Europe.

Source: Scotland On Sunday