SAB to pick up 54% stake in Rochees

Kavita K Bhaskaran

New Delhi, Jan 3: South African Breweries (SAB) is acquiring 100 per cent stake in Rajasthan-based Rochees Breweries. The company has signed an agreement with Moolrajanis, the promoters of Rochees, and sought approval of the Foreign Investment Promotion Board (FIPB).

The company plans to pick up 53.54 per cent shareholding of the promoters by purchasing 95,61,400 fully paid equity shares of Rs 10 each.

As per the agreement, SAB will make an open offer to acquire the rest 46.46 per cent shares held by the public.

Speaking to The Financial Express, SAB India chairman Devin Narang said, “Acquisition of Rochees is part of our expansion plan in the country.”

He informed that the company had plans to invest Rs 600 crore in acquisitions in India. With this acquisition, SAB’s exsiting capacity of 6 million cases will go up by 1 lakh cases.

Mr Narang said Rajasthan was a strategic and volume market and acquisition of this brewery fell in line with the company’s plans for India.

SAB started operations in February 2000 and in July it acquired Narang Breweries in Nawabganj in Uttar Pradesh.

In June 2001, it also picked up majority stake in Mysore Breweries and its subsidiary Pals Distilleries. At present it holds 94.35 per cent stake in Mysore Breweries and 92.36 per cent of the equity capital of Pals Distilleries.

Through the acquisition of these two companies the company gained a strong presence in Karnataka, Andhra Pradesh and Maharashtra which account for largest beer consuming states in the country.