The tussle between lenders and Kingfisher has taken an ugly turn. CNBC-TV18's Gopika Gopakumar reports that UB Holdings has dragged its largest lender SBI (State Bank of India) to court to prevent the sale of shares held by the bank.
The development comes in the wake of the consortium of lenders planning to sell their lot of shares in the airline before the commencement of the asset recovery proceedings. UB Holdings filed a case in the Bombay High Court to prevent the consortium of lenders led by SBI from selling shares of United Spirits (USL) in the market.
SBI has already sold shares in two lots at the current market price and is likely to continue selling these shares despite the case being heard in the Bombay High Court.
UB Holdings has stated that the sale of shares by the consortium of lenders could jepordise the USL-Diageo deal that is currently underway. Diageo is planning to buy 53 percent of United Spirits of which 26 percent will be via open offer. SBI’s sale of these shares forces Diageo to buy these shares at the current market price which is higher than the open offer price of Rs 1,440 per share.
UB Holdings' plea also adds that the sale of share by the lenders could dilute Mallya’s voting rights and prevent him from being able to deliver on his share at the open offer price.
The consortium of lenders is also likely to send an official loan recall notice in the next few days as part of the asset recovery proceedings.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
