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Heineken may up stake in United Breweries by 10-15%: Report

Already the largest shareholder in United Breweries with a 46.7 percent shareholding, Heineken seeks to further strengthen its control in the company by taking its stake to over 51 percent.

December 24, 2019 / 04:00 PM IST
Heineken beers are seen on a production line at the Heineken brewery in Jacarei, Brazil. (Image: Reuters)

Heineken beers are seen on a production line at the Heineken brewery in Jacarei, Brazil. (Image: Reuters)

 
 
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With the aim of increasing its stake in United Breweries, Heineken is mulling an open offer, sources told CNBC-TV18. The beer-maker is likely to launch a voluntary offer for a 10-15 percent stake.

Already the largest shareholder in United Breweries with a 46.7 percent shareholding, Heineken seeks to further strengthen its control in the company by taking its stake to over 51 percent. However, the company said in response to queries from CNBC-TV18 that it would not comment on 'market rumours'.

Moneycontrol could not independently verify the report.

It may also look at a higher board representation in the company following the offer. Vijay Mallya and other promoter entities collectively hold 11 percent in United Breweries.

Earlier in December, a report by The Economic Times suggested that United Breweries, the maker of Heineken beer, would drop its oldest distributor Ultimate Branding Worldwide, following suspicion of a possible nexus with former liquor baron Vijay Mallya. A whistle-blower complaint in the case led to a probe into the alleged nexus by the Enforcement Directorate.

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Ther report added that the agency was looking into around five companies-- in India and overseas -- in connection with their association with Mallya.
Moneycontrol News
first published: Dec 24, 2019 03:50 pm

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