This move by Holland liquor brand is going to create a strong hold of Heineken in Indian Market.
United Spirits Ltd (USL) has sold its entire 3.21 percent stake in United Breweries to Heineken for Rs 872 crore, giving rise to speculation that Vijay Mallya may lose control over the company that makes the Kingfisher brand of beer.
This move by Holland liquor brand is going to create a strong hold of Heineken in Indian Market.
Company paid Rs 872 crore ($137 million) to Kingfisher to bought the entire 3.21 per cent stake owned by United Spirits in beer make United Brewries, the proud owner of Kingfisher beer.
Now, the Heineken’s stake in United Breweries (UB) has increased from 39% to 42.1%.
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United Spirits sold its stake to Heineken International BV at a price consideration of Rs 1,030 per share, United Spirits said in a BSE filing.
“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 percent stake) to Heineken International BV,” it said.
USL further said: “The sale consideration net of brokerage is Rs 872 crore resulting in profit on this transaction.”
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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.