Emperador bids for French cognac firm from Japan's Suntory

Philippine liquor firm Emperador Inc said on Monday it has submitted a bid to buy French cognac maker Louis Royer from Japan's Suntory Holdings Ltd., and could go to the debt market to fund the deal.

 

The acquisition is unlikely to cost Emperador more than last year's $700 million deal to buy the Whyte & Mackay whisky unit of India's United Spirits Ltd, company director and spokesman Kingson Sian said.

 

Sian declined to disclose Emperador's offer and said he wasn't aware who the other bidders for Louis Royer were.

 

"After the first round, there may be a second round... There may be a shortlist first, so it's too early to say," Sian said when asked when the bidding results were likely to be released.

Suntory declined to comment on Emperador's offer. "It is a company policy that Suntory does not make any comment on such reports," a spokeswoman in Japan said.

 

Suntory, one of Japan's oldest companies, is looking to sell off its smaller assets to consolidate its portfolio and finance its acquisitions, Sian said.

 

Suntory bought US drinks firm Beam in a deal last year valued at about $15.7 billion. It was the third-biggest acquisition by a Japanese company.

 

Emperador, mainly a brandy producer with a market value of $4 billion, bought Whyte & Mackay last year as part of a long-term strategy to expand its product portfolio and global reach.

 

Shortly after its purchase of Whyte & Mackay, Emperador joined the Philippines' benchmark stock index.

 

"We want to continue the momentum and sustain the strong growth going forward," Sian told reporters after the company's annual stockholders' meeting.

 

"We're going to hit all the major markets – China, Taiwan, Korea, Southeast Asia, Hong Kong – for our signature products," Sian said. – Reuters