Cobra beer up for sale, valued at £200m
Matthew Goodman Indian entrepreneur Karan Bilimoria has decided to put Cobra, the beer business he founded 18 years ago, up for sale for an estimated £200 million. Bilimoria, 46, has drafted in advisers from N M Rothschild to find a new investor in the business, famous for supplying its beer to most of the curry houses in Britain. The decision to sell comes just two months after Cobra raised £15 million of fresh capital. Investors, including Bilimoria, provided the funding after the failure of talks to sell a stake to Diageo, the world's biggest spirits producer. Rothschild will begin contacting potential buyers in the next few days. These are expected to include international brewers with a strong presence in the UK, such as Carlsberg, Heineken, InBev and Molson Coors. International brewing concerns such as United Breweries of India, where Cobra has a growing presence, are also likely to be contacted, as are private-equity firms. Bilimoria is said to be openminded about selling a stake in the business or accepting a full takeover. He is keen to secure investment to take Cobra to the next stage of its development. Although Cobra has yet to make a profit, it remains one of the UK's fastest-growing beer brands in a market that is in overall decline. At retail, it has sales of £178 million. The brand has grown by 28% in the last year, according to the data-research firm AC Nielsen, and analysts suggested the company could be worth around £200 million. The company's largest shareholder is Bilimoria, who owns about two-thirds of the shares. The remaining stock is held by hedge funds, business-angel investors and the company's own employees. Bilimoria, who moved to Britain from India when he was 19, came up with the idea for Cobra while studying law at Cambridge. He felt that lagers were too gassy and wanted to design a brand that would be easier to drink with food. After contracting a brewery in India to help develop his beer, the first crates of Cobra were shipped out to Britain in June 1990. SUNDAY TIMES, LONDON --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en -~----------~----~----~----~------~----~------~--~---
