Heineken increases stake in United Breweries to 43%

Mallya holds 32.45% in United Breweries, nearly half of which is pledged with banks as his personal surety for loans taken to run the defunct Kingfisher Airlines

Dutch beer maker Heineken increased its stake inUnited Breweries to 43% by buying shares in the open market even as UB chairman Vijay Mallya battles an outrage for loans he owes to banks.

Mallya holds 32.45% in United Breweries, nearly half of which is pledged with banks as his personal surety for loans taken to run the defunct Kingfisher Airlines.

Heineken bought 21.15 lakh shares for Rs 178.98 crore to increase its stake in UB by 0.8 per cent. Yes Bank and ECL Finance, with whom Mallya had pledged shares, sold them in bulk deals on Wednesday, according to the Bombay Stock Exchange.

Mallya, who built India's largest beer and liquor company, lost majority control after he started the cash guzzling Kingfisher Airlines that virtually brought down his empire. Mallya lost majority control in United Breweries to Heineken, in which he still has significant stake and United Spirits to British liquor major Diageo, from which he was forced to exit.In the bargain, Mallya got $75 million from Diageo with a committment not to compete with United Spirits and Diageo globally.

Source : http://www.business-standard.com