Heineken May Gain Control of United Breweries Ltd | CORPORATE ETHOS

Heineken May Gain Control of United Breweries Ltd

By: | March 8, 2018
UBL
Mar 8: Dutch brewer Heineken may gain control of United Breweries  Ltd (BSE: 532478, NSE: UBL)if its proposal to buy unpledged shares of Vijay Mallya’s United Breweries is accepted by the Enforcement Directorate.
The unpledged shares were transferred from Stock Holding Corporation of India (SHCIL) to Enforcement Directorate under the Prevention of Money Laundering Act. ED is planning to raise Rs 4000 cr from the sale of the shares, according to media reports. ED had seized the shares of UBL following diversion of loan funds and default of payment of dues.
Presently, Heineken, the world’s second largest beer maker,  holds 44 % stake in United Breweries and will raise the stake to 58% if the sale happens. The shares are valued at Rs 4,331 cr based on current market price of Rs 1020. Vijay Mallya owns 29.46% stake in UB while the rest is with the public.
UBL is currently trading at Rs 1023 levels in BSE after climbing to a recent high of 1081 towards February end.