Kingfisher now belongs to Heineken for Rs 872 cr
Advertisement
The United Spirits (USL) exited all non-core investments in United Breweries and sold 85 lakh shares to Heineken , which will now give it leverage to managing affairs of India's largest beer producer.
USL sold 3.21% shares for Rs 872 crore in a block trade. The shares were sold at Rs 1,030 apiece, a slight premium to Tuesday's closing price of Rs 1,014.10.
Now, the Heineken's stake in United Breweries (UB) has increased from 39% to 42.1%. This deal will give Heineken an upper hand overVijay Mallya in running the company.
"It clearly shows that United Spirits is going quick on sale of non-core assets. The next target is going to be the IPL cricket team. The company can raise up to Rs 2,000-2,500 crore in the next two years," Abneesh Roy, an analyst at Edelweiss Securities, told ET.
However, Mallya is not in any danger of losing control of his firm as he will continue to hold 37.5% and the two partners will have the same shareholder rights.
But Heineken could dictate company’s business plan as it has higher shareholding.
The exit came after Diageo had asked Mallya to quit as chairman of USL revelations of fund diversion when the company was under his control.
But Mallya has refused to do so, saying that Diageo took over the company after a thorough due diligence and that it was aware of all facts pertaining to the company's financials.
A person close to USL told Economic Times that the firm was afraid it will lose its rights over these shares if lenders attach these as part of their legal dispute with Mallya over unpaid dues relating to the Kingfisher Airlines bankruptcy.
(Image: Indiatimes)
Advertisement
USL sold 3.21% shares for Rs 872 crore in a block trade. The shares were sold at Rs 1,030 apiece, a slight premium to Tuesday's closing price of Rs 1,014.10.
Now, the Heineken's stake in United Breweries (UB) has increased from 39% to 42.1%. This deal will give Heineken an upper hand over
"It clearly shows that United Spirits is going quick on sale of non-core assets. The next target is going to be the IPL cricket team. The company can raise up to Rs 2,000-2,500 crore in the next two years," Abneesh Roy, an analyst at Edelweiss Securities, told ET.
However, Mallya is not in any danger of losing control of his firm as he will continue to hold 37.5% and the two partners will have the same shareholder rights.
Advertisement
The exit came after Diageo had asked Mallya to quit as chairman of USL revelations of fund diversion when the company was under his control.
But Mallya has refused to do so, saying that Diageo took over the company after a thorough due diligence and that it was aware of all facts pertaining to the company's financials.
A person close to USL told Economic Times that the firm was afraid it will lose its rights over these shares if lenders attach these as part of their legal dispute with Mallya over unpaid dues relating to the Kingfisher Airlines bankruptcy.
(Image: Indiatimes)
Advertisement
- A couple accidentally shipped their cat in an Amazon return package. It arrived safely 6 days later, hundreds of miles away.
- A centenarian who starts her day with gentle exercise and loves walks shares 5 longevity tips, including staying single
- 2 states where home prices are falling because there are too many houses and not enough buyers
- "To sit and talk in the box...!" Kohli's message to critics as RCB wrecks GT in IPL Match 45
- 7 Nutritious and flavourful tiffin ideas to pack for school
- India's e-commerce market set to skyrocket as the country's digital economy surges to USD 1 Trillion by 2030
- Top 5 places to visit near Rishikesh
- Indian economy remains in bright spot: Ministry of Finance
- JNK India IPO allotment date
- JioCinema New Plans
- Realme Narzo 70 Launched
- Apple Let Loose event
- Elon Musk Apology
- RIL cash flows
- Charlie Munger
- Feedbank IPO allotment
- Tata IPO allotment
- Most generous retirement plans
- Broadcom lays off
- Cibil Score vs Cibil Report
- Birla and Bajaj in top Richest
- Nestle Sept 2023 report
- India Equity Market