Tilaknagar Industries slumps after ABD calls off talks of acquisition

NEW DELHI: Shares of Tilaknagar Industries slumped nearly 9 per cent in trade on Tuesday after Kishore Chhabria-led Allied Blenders & Distillers (ABD) called off talks to acquire the compnay because of differences over valuation.

The stock hit intraday low of Rs 24, down 8.91 per cent on the BSE.

"There was a significant difference in what we were offering and what they were expecting," said Deepak Roy, executive vice-chairman of ABD, which makes the top selling liquor brand in the world, Officer's Choice.

BSE-listed Tilaknagar is the maker of Mansion House brandy and Savoy Club gin. With sales of nearly 5 million cases, Mansion House is the No 2 domestic brandy and the mainstay of the company. Brandy maker is in the midst of a Rs 550-crore debt restructuring.

ABD was to acquire a majority stake in Tilaknagar for an enterprise value of about Rs 1,500 crore and end the production and distribution fight over the two brands.

Tilaknagar refused to comment citing regulatory reasons.

(With inputs from ET Bureau)