Dutch beer giant Heineken has gained the right to control India's largest brewer United Breweries (UB), the last big company controlled by troubled tycoon Vijay Mallya. Heineken raised its shareholding in the company to over 42% after buying shares offloaded by United Spirits on Tuesday.
The latest share acquisition has freed Heineken from "an earlier pact with Mallya based on equal shareholding and joint management", said a top UB official who did not wish to be named. Mallya's shareholding has fallen to 32%.
In 2009, Heineken and Mallya had unveiled a partnership with both controlling 37.5% stake each. Both sides had equal board representation with Heineken getting the post of chief financial officer. But Mallya's troubled emanating from the grounded Kingfisher Airlines gave foreign partner an opportunity slowly raise stake in a company, which owns Kingfisher beer and roughly 50% of the domestic beer consumption.
Heineken poised to wrest control of UB from Mallya - The Times of India
The latest share acquisition has freed Heineken from "an earlier pact with Mallya based on equal shareholding and joint management", said a top UB official who did not wish to be named. Mallya's shareholding has fallen to 32%.
In 2009, Heineken and Mallya had unveiled a partnership with both controlling 37.5% stake each. Both sides had equal board representation with Heineken getting the post of chief financial officer. But Mallya's troubled emanating from the grounded Kingfisher Airlines gave foreign partner an opportunity slowly raise stake in a company, which owns Kingfisher beer and roughly 50% of the domestic beer consumption.
Heineken poised to wrest control of UB from Mallya - The Times of India
