United Spirits sells its United Breweries’ stake to Heineken
07/07/2015 16:03

Alcoholic beverages company United Spirits Ltd (USL) on Tuesday said it has sold its entire 3.21 per cent stake in United Breweries Ltd, the maker of Kingfisher beer, for Rs 872 crore.

United Spirits sold its stake to Heineken International BV at a price consideration of Rs 1,030 per share, said United Spirits in a filing to the Bombay Stock Exchange on July 07, 2015.

“The company has placed an order for sale by way of a block trade on National Stock Exchange of India Ltd (NSE) of 85,00,000 equity shares held by the company in United Breweries Ltd (consulting 3.21 per cent of the paid up equity share capital of United Breweries Ltd) to Heineken International BV,” it said.

The company further said, “The sale consideration net of brokerage is Rs 872 crore (against book value of Rs 15 cr) resulting in profit on this transaction.”

Earlier this year, United Spirits asked its erstwhile promoter and current Chairman Vijay Mallya to quit the board alleging fund diversion to the tune of Rs 1,337 crore to Kingfisher and other UB group entities although the liquor baron rejected the demand and the charge.

USL said that following the completion of this sale, it will “hold no shares in United Breweries and will cease to be a promoter of United Breweries Ltd”.

This divestment is a part of the process of monetising certain non-core assets of the company, USL added.

Meanwhile, shares of the company closed at Rs 3,499.55 apiece, up 2 per cent, from previous close on BSE.