Heineken Takes Control Of Kingfisher Beer Maker United Breweries

Heineken, the second largest beer company in the world, increased its stake in United Breweries (UBL) to 61.5 per cent on Wednesday. The Dutch parent of UBL, which had 45 per cent stake prior to today’s transaction, bought the 14.99 per cent stake worth about Rs 5,825 crore held by the Debt Recovery Tribunal.

Given that Heineken received an exemption from making an open offer, it could also acquire the balance 11 per cent UB group stake pledged with banks through the same route. If this goes through, Heineken’s stake in UBL, which has a 50 per cent share in India’s beer market, will cross the 72 per cent mark.

These shares were earlier owned by UB group chairman, Vijay Mallya who fled India after defaulting on bank loans taken by his now closed airline – Kingfisher Airlines. After Mallya escaped to London – leaving unpaid bills of thousands of employees, vendors and lenders – the Enforcement Directorate attached his properties including his stake in Indian companies. The Indian lenders had made claims worth Rs 9,000 crore against the airline. The ED transferred the shares to the lenders after the PMLA Court ordered the agency in May last week.