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The chairman and owner of the Scotch whisky distiller Whyte & Mackay is thrashing out details of a potential £700 million ($1.8 billion) sale of his business to the Indian billionaire Vijay Mallya.
Vivian Immerman, who owns two-thirds of the company, met Mallya, head of the spirits giant United Breweries, in London last week to discuss the sale of one of Scotland's last independent distillers. A deal could be reached this week.
Immerman said yesterday that he believed £700 million was a fair price for the business, which he has transformed since taking full control with his brother-in-law, the property tycoon Robert Tchenguiz, two years ago.
However, he added: "I think the business is worth more than that."
If talks were to stall with Mallya, he said, he would be equally happy to sit on the business and let it grow further.
Immerman said his main reason for selling would be to help Whyte & Mackay grow through greater international distribution. However, he indicated he could stay on in some capacity.
Immerman was part of a group of investors who paid £208 million for the company in 2001. He became chief executive two years later and took full control in 2005. He made a number of changes that have ensured strong organic growth, expected to be 20 per cent a year over the next two years. Operating profits are expected to reach £50 million this year.
Immerman changed the name from Kyndal Spirits back to Whyte & Mackay, the name of the founders of the 163-year-old company. "This allowed me to take advantage of its heritage and made it a more authentic brand," he said.
He repackaged the company's products, repositioned them in the premium market and then changed the company from one focused on production to one with strong marketing, selling and branding divisions.
The colourful Mallya, who is as comfortable in the world of celebrity as business, is keen to get his hands on the Scottish distiller's vast aged single malt cellar and its European distribution network.
Whisky consumption is growing fast in India, the world's largest market, but most is made locally because of high taxes on foreign imports.
- INDEPENDENT
