Cobra beer put up for sale by India entrepreneur
LONDON, Nov 23 (Reuters) - Indian entrepreneur Karan Bilimoria is putting his Cobra beer business up for sale for around 200 million pounds ($296.8 million), according to sources close to the situation.
Bilimoria has appointed investment bank Rothschild to find a new investor in the beer company he founded 18 years ago after the failure of talks earlier this year to sell a stake to the world's biggest alcoholic drinks group Diageo Plc (DGE.L).
"Cobra beer is looking at a strategic partnership or a sale in order to achieve the full potential of the business," the beer company said in a statement on Sunday.
Rothschild is expected to contact potential buyers this week including brewers with a big presence in the UK such as Anheuser-Busch InBev INTB.BR, Heineken (HEIN.AS), Carlsberg (CARLb.CO) and Molson Coors (TAP.N), while India's United Breweries (UBBW.BO) and private equity groups will also be approached, the sources said.
The beer group had retail sales of 177.6 million pounds in its last financial year with the beer brand growing sales by 28 percent, but the group has yet to make a profit.
For the last 11 years, Cobra beer has been brewed under licence in Britain by privately-owned regional brewer Charles Wells of Bedford in southern England. It also has a small but growing Indian business.
Bilimoria, aged 46, owns around two thirds of the beer group with the remaining stake held by hedge funds, other investors and the company's own employees.
He developed the beer as a less gassy lager that would be easier to drink with food and the beer become popular at many of Britain's curry restaurants.
(Reporting by David Jones; Editing by David Cowell)
