United Spirits, a part of the UB Group, has announced that it will be merging with itself the Shaw Wallace & Company, an Indian spirit maker firm.

United Spirits had bought Shaw Wallace in 2005 for around Rs 1,300 crore.

The company stated in a filling to BSE, “Shaw Wallace’s shareholders would get 4 United Spirits shares for every 17 shares held in the company.”

The board of directors of both the firms has approved the merger of Shaw Wallace with United Spirits Ltd. The Board has also approved the scheme of merger of Zelinka Limited ('Zelinka') with the Company. As Zelinka is wholly owned subsidiary of the Company, there is no consideration in respect of merger of Zelinka with the Company.

Ravi Nedungadi, president & chief financial officer of UB Group said “the process of merger will begin pretty soon. This merger will add another Rs 60 crore to United Spirits bottom line of close to Rs 500 crore and around Rs 350 crore to the topline.”

He added “the recently acquired Whyte & Mackay for around $1.2 billion will stay as a subsidiary.”

Vijay Mallya, chairman of UB Group said “To ensure completeness of product offering as well as to ensure a permanent supply of critical inputs, a number of acquisitions have been completed over the last 18 months.”

The Shares of United Spirits closed, today, at Rs. 1844.80 on NSE, down by 0.9 % from the previous close of Rs. 1861.60. The stock touches intraday high of Rs. 1925.00 and low of Rs. 1795.00