Monday, September 27, 2021
HomeBusinessUSL exits United Breweries with Rs. 872-cr stake sale

USL exits United Breweries with Rs. 872-cr stake sale

Diageo-controlled United Spirits Ltd (USL) has exited from Vijay Mallya-led United Breweries Ltd by selling its entire 3.21 per cent stake in the company for Rs 872 crore.

United Spirits sold its stake to Heineken International BV at a price consideration of Rs 1,030 per share, United Spirits said in a filing to the BSE.

“The company has placed an order for sale by way of a block trade on NSE of 85 lakh equity shares held by the company in United Breweries Ltd (consulting 3.21 per cent stake) to Heineken International BV,” it said.

“The sale consideration net of brokerage is Rs 872 crore resulting in profit on this transaction,” USL further said.

In November 2012, Diageo had bought a controlling 55 per cent stake in United Spirits Limited (USL), for about $3 billion (over Rs 11,000 crore) from UB Group.

Earlier this year, United Spirits asked its erstwhile promoter and current chairman Vijay Mallya to quit the board alleging fund diversion to the tune of Rs 1,337 crore to Kingfisher Airlines and other UB group entities although the liquor baron rejected the demand and the charge.

USL said that following the completion of this sale, it will “hold no shares in United Breweries and will cease to be a promoter of United Breweries”.

The sale is part of the process of monetizing non-core assets of the company, USL added.

As of March 31, 2015, Heineken International and Heineken UK together held a 4.81 per cent stake in United Breweries.

United Spirits also received notices from the Ministry of Corporate Affairs and the Income Tax Department for inspection of its book subsequent to a probe ordered by its new management over alleged irregularities in loans given by it to various companies of Vijay Mallya-led UB Group.

USL’s board had asked managing director and CEO Anand Kripalu to further probe “possible existence of any other transaction of a similar nature” with certain “additional parties”, data from the BSE showed.

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