MUMBAI (Reuters) - India's second-largest spirits producer Radico Khaitan dismissed media reports of the company being in talks to sell a stake to Japan's Suntory Holdings, describing them as "speculative."
Shares of the company closed 5 percent higher on Tuesday after the Economic Times reported that Radico is in discussions with Suntory to sell a 26 percent stake for 8.7 billion rupees, citing investment bankers.
Speculation of M&A deals in the Indian beverages market has been rife after Diageo PLC bought a stake in United Spirits in November. Market talk has intensified as the slump of the rupee makes Indian assets cheaper to prospective overseas buyers.
Radico, which sells brands such as 8 p.m. Whiskey, Magic Moments, Contessa Rum and Old Admiral Brandy, has in the past said it is open to a joint venture with international companies.
A spokesperson for Suntory said the Japanese firm won't comment on the media reports.
(Reporting by Nandita Bose in MUMBAI; Additional reporting by James Topham in TOKYO; Editing by Ryan Woo)