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Heineken acquires an additional 14.99% stake in UBL

Heineken International BV is likely to have acquired an additional 14.99 per cent stake in United Breweries Ltd (UBL) after around 3.96 crore shares of the Bangalore-based company were traded on BSE at Rs 1,471.25 per share. Heineken got an open offer exemption from the Securities and Exchange Board of India (SEBI) to buy an additional 14.99 per cent stake in the company from the Bangalore debt recovery tribunal. The development comes after the Competition Commission of India (CCI) on June 21 said it has approved Heineken International BV’s proposed acquisition of an additional equity stake in United Breweries (UBL).

Prior to the transaction, Heineken held a 46 percent stake in UBL.

The largest brewer in India ( United Breweries Limited (UBL ), the maker of India’s best-selling Kingfisher lager, is owned by Indian businessman Vijay Mallya who the Government wants extradited to Britain over a $1.4 billion loan taken out by Indian banking authorities.

Heineken International has received an open offer exemption from Securities and Exchange Board of India (SEBI) to acquire a further 14.99 percent share of United Breweries Ltd (UBL) from the Bangalore Debt Recovery Tribunal. Dutch beer maker Heineken will increase its stake in United Brewery by 4.3 per cent by buying shares on the open market as UBL boss Vijay Mallya outrages over loans owed to banks. The company will buy 21.15 lakh shares for Rs 179 crore, increasing its stake to 0.8 percent. 

Market regulator Sebi on Tuesday exempted Heineken International B.V. from obligation to make an open offer following its planned acquisition of shares in United Breweries Ltd (UBL). The Securities and Exchange Board of India (Sebi) on Tuesday cleared the obligation of Dutch multinationals following the takeover of UBL to make an open offer. The move comes after the market regulator received an application from the company to waive from the SAST (substantial acquisition of shares) and Takeover rules relating to the proposed acquisition by United Brewery Ltd.

Heineken took control of India’s second-largest brewer United Breweries Limited (UBL) – consolidating its position in a huge market where beer consumption is growing but from a low base. Most of the latest information is available on the Heinekens website and follows us on LinkedIn, Twitter and Instagram. The Amsterdam-based company is listed on Euronext Amsterdam.

Indian markets are likely to open with mixed global signals, as the increased pace of vaccine delivery in India continues to fuel optimism among investors. US markets ended lower ahead of comments from Fed chairmen, a release of macroeconomic data and volatility in cryptocurrencies. At 4.08pm, shares were up 0.29 per cent, while shares were down 7.8 per cent and unchanged.

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Sindhu Nagaraj

Global Business Line Team
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