Heineken acquires 3.21% in Vijay Mallya’s United Breweries
15 May 2013
Heineken NV, the world's third-largest brewer has acquired a 3.21-per cent stake in United Breweries Ltd (UBL), sending the shares of Vijay Mallya-controlled beer maker up by more than 6 per cent.
In a stock exchange filing, UBL, that makes the Kingfisher brand of beer, said that Heineken's UK unit Heineken UK Ltd has acquired 8.48 million shares formerly held by Scottish & Newcastle India Private Ltd (S&N).
The purchase will increase the Dutch brewer's holding in UBL from 37.5 per cent to 40.71 per cent.
The sale comes six months after the Indian liquor baron agreed to sell 53.4-per cent stake in United Spirits to UK's Diageo Plc for Rs11,165 crore in a multi-structured deal. (See: Diageo to acquire 53.4 % in United Spirits for Rs11,165 crore)
In order to raise funds by the Vijay Mallya group, UBL had in April raised £1 million as loan from Heineken and signed a brewing agreement with the Amsterdam-based company.