Heineken increases stake in United Breweries to 43%

On Wednesday, Heineken confirmed that it has acquired 21.15 lakh shares of United Breweries representing 0.8% stake

P.R. Sanjai
Updated24 Mar 2016, 04:17 AM IST
Heineken is the largest share holder in United Breweries, India&#8217;s largest brewer. Photo: AFP<br />
Heineken is the largest share holder in United Breweries, India&#8217;s largest brewer. Photo: AFP

Mumbai: Dutch beer maker Heineken has bought additional shares of United Breweries Ltd from the open market to raise its total stake in the Indian company to 43% amid rumours that Heineken will ask Mallya to step down from the board.

On Wednesday, Heineken confirmed that it has acquired 21.15 lakh shares of United Breweries representing 0.8% stake.

Heineken is the largest share holder in United Breweries, India’s largest brewer.

Mallya, who owes banks more than $1 billion, and his associate companies hold 32.45% stake in United Breweries.

“Heineken can confirm that it has acquired in total 21.15 lakh United Breweries shares. We acquired 6 lakh United Breweries shares from Yes Bank Ltd for 847 per share, 8.52 lakh United Breweries shares from ECL Finance Ltd for 845 per share and an additional 6.62 lakh shares from ECL Finance for 847 per, respectively,” Heineken spokesperson said.

“This represents 0.8% of United Breweries’ share capital. The transaction increases Heineken’s stake in United Breweries from 42.2% to 43%,” the spokesperson said.

However, the spokesperson clarified that this purchase does not result in any changes to the United Breweries governance structure.

On 17 March, Reuters had reported that Heineken is likely to ask Mallya to step down from the board of United Breweries.

Mallya, who was ranked the 45th-richest Indian with a net worth of $1 billion by Forbes in March 2012, left for London on 2 March, days before a group of 17 banks to whom Mallya owes around 9,000 crore approached the Supreme Court to bar him from leaving the country.

Mallya is currently chairman of United Breweries.

Citing people familiar with the development, Reuters reported that such a move is likely to be a prelude to the Dutch drinks firm raising its stake in the maker of Kingfisher beer to above 50%, betting on a small but fast-growing beer market.

Heineken acquired a 37.5% stake in United Breweries in 2008 through its takeover of Scottish & Newcastle and has since increased its holding to 42.4%.

“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,” the Heineken spokesperson said.

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.

MoreLess
First Published:24 Mar 2016, 04:17 AM IST
Business NewsCompaniesNewsHeineken increases stake in United Breweries to 43%

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Tata Steel share price

    155.05
    11:42 AM | 7 NOV 2024
    1.45 (0.94%)

    Bharat Electronics share price

    299.30
    11:42 AM | 7 NOV 2024
    -2.55 (-0.84%)

    Indian Oil Corporation share price

    144.30
    11:42 AM | 7 NOV 2024
    -0.35 (-0.24%)

    Tata Power share price

    445.00
    11:42 AM | 7 NOV 2024
    -4.3 (-0.96%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Apollo Hospitals Enterprise share price

    7,420.35
    11:33 AM | 7 NOV 2024
    450.5 (6.46%)

    Karur Vysya Bank share price

    232.65
    11:28 AM | 7 NOV 2024
    6.5 (2.87%)

    Federal Bank share price

    206.70
    11:33 AM | 7 NOV 2024
    1.9 (0.93%)

    City Union Bank share price

    180.15
    11:33 AM | 7 NOV 2024
    0.65 (0.36%)
    More from 52 Week High

    Hindalco Industries share price

    650.15
    11:33 AM | 7 NOV 2024
    -58.1 (-8.2%)

    Adani Energy Solutions share price

    990.10
    11:33 AM | 7 NOV 2024
    -85.2 (-7.92%)

    Blue Star share price

    1,750.95
    11:31 AM | 7 NOV 2024
    -127.8 (-6.8%)

    Glenmark Pharmaceuticals share price

    1,677.00
    11:33 AM | 7 NOV 2024
    -91.95 (-5.2%)
    More from Top Losers

    KEC International share price

    1,064.50
    11:33 AM | 7 NOV 2024
    89 (9.12%)

    Apollo Hospitals Enterprise share price

    7,420.35
    11:33 AM | 7 NOV 2024
    450.5 (6.46%)

    DCM Shriram share price

    1,179.15
    11:32 AM | 7 NOV 2024
    62.8 (5.63%)

    PB Fintech share price

    1,749.65
    11:33 AM | 7 NOV 2024
    84.85 (5.1%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      80,365.000.00
      Chennai
      80,371.000.00
      Delhi
      80,523.000.00
      Kolkata
      80,375.000.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.92/L0.00
      Chennai
      100.80/L0.00
      Kolkata
      104.95/L0.00
      New Delhi
      94.77/L0.00

      Popular in Companies

        HomeMarketsloanPremiumMint Shorts