Analysts Say Diageo’s Proposed Whyte & Mackay Divestiture Could Fetch $735 Million

Following Diageo’s November offer to U.K. regulators to offload part of its recently-acquired Whyte & Mackay Scotch whisky unit, analysts are estimating the value of the assets in question at around $735 million (£450m), reports Reuters.

Currently, Diageo’s offer includes the Invergordon, Jura and Fettercain distilleries, but not its Dalmore and Tamnavulin facilities. Were Diageo to include Dalmore—one of the world’s most prestigious single malts and arguably Whyte & Mackay’s most valuable asset—the price of the deal could rise significantly, analysts say. India’s United Spirits Ltd., controlled by Diageo since this past summer, paid $1.2 billion for the entire Whyte & Mackay in 2007.

So far, only Vivian Imerman, formerly Whyte & Mackay’s CEO and now chairman of investment firm Vasari Global, has publicly expressed interest in Diageo’s offer, which is being examined by the U.K.’s Office of Fair Trading. Beyond increasing the value of the deal, insiders also believe the addition of Dalmore could bring more bidders out of the woodwork, including private equity groups. Diageo declined to comment.

Tagged : Diageo, Scotch whisky, spirits, whisky, Whyte & Mackay

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