Photo: AFP
Photo: AFP

Stake hike doesn’t change United Breweries governance structure: Heineken

Heineken says the transaction increases its stake in United Breweries from 42.2% to 43% and does not result in any changes to UB's governance structure

New Delhi: Amid speculations that Heineken could take control of Vijay Mallya-led United Breweries (Holdings) Ltd, or UB, the Dutch beer maker on Tuesday said its increasing stake in UB to 43% recently will not result in any changes in the Indian firm’s governance structure.

“Heineken can confirm that it has acquired in total 21,15,088 UBL shares... the transaction increases Heineken’s stake in UBL from 42.2% to 43%... it does not result in any changes to the UBL governance structure," a Heineken spokesperson told PTI in an emailed response.

The spokesperson further said, “Heineken continues to be positive about the prospects of the business in India. India has highly favourable demographics with strong economic fundamentals, so the market remains an exciting opportunity for continued growth."

Last week, Heineken consolidated its stake in UB by picking up over 21 lakh shares of the Vijay Mallya-led firm for 179 crore through open market transactions. The spokesperson said Heineken had acquired in total 21,15,088 UB shares.

“We acquired 6,00,000 UBL shares from Yes Bank for 847 per share, 8,52,548 UBL shares from ECL Finance for 845 per share and an additional 6,62,540 UBL shares from ECL Finance for 847 per share, respectively... the total price was 24 million euro," he added.

Earlier this month, Vijay Mallya left India for the UK amid growing clamour for recovery of over 9,000 crore dues to banks by the defunct Kingfisher Airlines.

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