Heineken looking to up further stake in UBL: Sources

Dutch breweries firm Heineken, which was in the news recently for picking up 1.35 percent stake in United Breweries Ltd through the open market, may be looking to further increase its stake in the Indian company, reports CNBC-TV18's Kritika Saxena.

This could be another chapter in the series of stake sales that the Vijay Mallya-led UB Group has resorted to as it reels under a mammoth debt burden run up since the launch of the conglomerate's now-grounded Kingfisher Airlines.

Also read: Heineken hikes stakes in UBL, becomes biggest shareholder

Sources have told CNBC-TV18 that UBL executives recently met with the management of the global beer major, which offered to buy UB Group's stake in the firm.

Sources added that while both Heineken and UB Group have been working on the contours of the deal, UB Group is reluctant to opt for a complete buyout and is seeking a premium for a stake sale in the Rs 21,000 crore firm.

As part of the deal, UB Group is likely to retain a minority stake in the firm while Vijay Mallya is looking to remain as chairman, it is learnt.

Currently, Heineken owns 38.9 percent stake while Vijay Mallya has 37.3 percent.

Recently, the UB Group ceded management control of another of its firms, United Spirits Ltd, to London-based spirits major Diageo.

Heineken is unlikely to go down the open market purchase route to further increase its stake, sources said. When contacted, Heineken said as a matter of policy, it did not comment on market speculation.