India’s brewer, SHAW Wallace & Co Ltd, part of the Jumbo Group empire, is prepared to divest up to 50% stake in its beer business to SABMiller, the world’s second largest brewer.

This is the first time SWC has revealed its intention to offload a major stake in its beer business to SABMiller even as the official maintained that it was not in a desperate hurry to do so.

Over the last 18 months, SWC and SABMiller have been in talks for a strategic deal.

The talks could suffer a setback in the wake of a court move by Ms Bhavika Godhwani, the estranged eldest daughter of the Chhabria estate, against the ongoing restructuring exercise in SWC.

Two weeks ago, Ms Godhwani`s legal counsel attempted a legal intervention in the Mumbai High Court to join a class action suit initiated by Mr Mallya`s McDowell & Co Ltd, against the SWC restructuring.

SWC has restructured its beer business into two separate marketing and manufacturing entities - Shaw Wallace Breweries Ltd (SWBL) and Skol Breweries Ltd.

Source: The Hindu Business Line

11 March, 2003