MUMBAI, MARCH 22, 2005:
The Jumbo group, which owns substantial stake in
at least six other Indian companies, is planning to
sell them off completely and exit India.
Non-resident Indian Vidya Chhabria, wife of late
founder Manu Chhabria, has started looking for buyers
for Mather & Platt, Hindustan Dorr Oliver, Falcon
Tyres, Gordon Woodroffe, Narmada Gelatines and Shaw
Wallace Agrichem. As one of the group companies, Dunlop
is facing litigation in Indian courts, its sell-off
will take some time, say sources.
Chhabria had raided these companies and acquired
stake in these companies in 1980s. Barring Shaw Wallace,
none of the other Chhabria group companies performed
well. Most of these companies have less than Rs 50
crore of turnover and are not in sound financial shape.
Of this, Shaw Wallace’s beer joint venture with
Sab Miller — Shaw Wallace Breweries Ltd —
is the other company which can result in yet another
bonanza for the Chhabrias.
The Chhabrias hold 49 per cent stake in the JV and
a sale of stake can fetch them another Rs 800 crore
from Sab Miller which has the first right of refusal
should the Chhabrias decide to sell their shares.
Though talks are on, both Chhabrias and Sab Miller
are not putting any price to the deal.
With yesterday’s Rs 1,300 crore deal, Vidya
Chhabria and her three daughters will be richer by
a massive Rs 2,100 crore if their talks with Sab Miller
goes through.
Meanwhile, the share prices of all UB group companies
and Shaw Wallace shot up on Tuesday after the UB group
signed the deal. UB group firm McDowell jumped 5 per
cent to Rs 264.15 to finally close at Rs 260.70, while
shares of Shaw Wallace gained 4.4 per cent to Rs 232
and closed lower at 214.35.
Brokers said the market had got an inking of the
Mallya-Chhabria deal if the rally in McDowell in the
past few days ahead was any indication.
