UB promoters plan stake hike after S&N deal

25 January 2008

Mumbai: FirStart Inc, a member of the promoter group of United Breweries Holdings, has told the company that they are exercising the option to convert 1,971,218 warrants into equity shares of UB Group.

The move follows the $15.4 billion deal to take over British brewer Scottish & Newcastle (S&N) by Sunrise Acquisitions, a consortium of Netherland-based brewer Heineken and Denmark-based Carlsberg. (See: Carlsberg-Heineken to acquire S&N for $15.4 billion) 

S&N holds 37.5 per cent stake in United Breweries, which will now go to Heineken under the takeover deal. Mallya holds another 37.5 per cent in UB, whose flagship brand Kingfisher controls about 48 per cent share of the domestic beer consumption.

The promoter group's shareholding, post-allotment, would go up to 51.82 per cent from 50.35 per cent.

The shareholders of UB Holdings, at the AGM held on November 28, had passed a proposal to issue 6,387,117 warrants of Rs10 each to FirStart.

The warrants are convertible into equity shares of the company (one share of Rs10 per warrant) at the option of the warrant holders within 18 months from the date of issue.