Manu Chhabria's mother says no to any sale of Chabria liquor business

MUMBAI, JANUARY 13, 2005
TIMES NEWS NETWORK

Late Manu Chhabria's mother, Rani Rajaram, shot off a notice to firms and individuals, including daughter-in-law Vidya Chhabria, chairperson of Shaw Wallace, saying no consent had been given to sell the group's liquor business.

The notice, also sent to her grand-daughter Komal Wazir and Manu's arch rival Vijay Mallya, said the buyer will have to take her consent or else she'd be forced to take legal action.

Rani's notice says that Shaw Wallace Distilleries (liquor business division of Shaw Wallace group) forms part of the estate of her son, who died in 2002.

Manu Chhabria, often described as one of India's biggest takeover tycoons, left behind a Rs 5,000-crore empire ranging from electronics goods (Dubai-based NRI's Jumbo Electronics was Sony's biggest distributor in the Gulf) to liquor to tyres (he acquired Dunlop).

The notice has also been sent to Mallya's UB, Mason Summers Alcobev, New Bridge Financial Advisors, Kyndal India and Seagram India, all of whom are reported to have shown interest in buying SWC's liquor business.

Rani Chhabria has issued copies of notice to consulting firm McKinsey & Co, Singapore and its Indian arm, as well as to SAB Millers India, JV partner in SWC beer business. McKinsey has been mandated by Jumbo group, Dubai-based parent firm of Chhabrias, to find a buyer for country's second largest liquor firm, next only to UB.

Komal Wazir declined to respond to queries, while Ravi Nedumgadi, finance director of UB Group, said, “We have not received any such notice.”

Mom says no to any sale of Chabria liquor business
Rani's second son Kishore, who controls BDA — owner of Officer's Choice whisky, is now engaged in a legal battle with Vijay Mallya over Herbertsons, makers of Bagpiper whisky.

The notice, issued by J Sagar Associates, to bidders, reads: “We have put you on notice that any discussions/negotiations/offers made by you for the purchase of Shaw Wallace Distilleries can only be done with our client's consent and any purchase or agreement to purchase the same without our client's consent will expose you to such legal action available to our client entirely at your risk as to the cost and consequences thereof..”

Shaw Wallace Distilleries has had a chequered history. In an overseas deal in 1985, Manu Chhabria, after establishing his Jumbo group in Dubai, acquired 38.7% ownership of Malaysian-based Sime Derby for $27 million.

Chhabria, sources say, increased his stake in Shaw Wallace to 50% by buying shares from open market after throwing out S P Acharya, the firm's MD who opposed Manu's ownership

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