Cobra up for sale

The Indian entrepreneur, Karan Bilimoria, owned Cobra beer is up for sale for an estimated GBP 200 million. Cobra beer is looking for a strategic partner to unwind its full potential. Investment bank Rothschild and City Capital Corporation have been appointed for contacting potential buyers like Carlsberg, Heineken, Inbev and Molson Coors. Earlier Cobra had been approached by Diageo, the world’s largest spirits producer, for a possible stake but the talks failed.

Recently Cobra had raise GBP 15 million through a private placement for expansion projects. The company's revenue grew 34% last year. This year it expects 44.4 million pounds in sales and is aiming to touch 100 million pounds by 2009.

Mr Bilimora ruled out the sale as the only option of raising equity, he is also contemplating a strategic tie-up with an international beverage company or a listing in the LSE or the BSE.