According to media reports, JM Financial, the investment bank appointed as adviser by Heineken International, recently submitted a share purchase proposal to ED to secure complete control of United Breweries. The agency had seized Mallya’s shares in connection with alleged loan diversion and default on payment of dues to banks. The shares are valued at about Rs 4,331crore at current market price of Rs 1,020 and comprise 15.2% in UB, the makers of Kingfisher beer.
The purchase will help the Dutch beer maker increase its stake to 58.2% from about 44% now. Mallya has 29.46% and the rest is with the public. The buyout, if it happens, will be a transfer of shares between interested parties and it need not make an
open offer.
ED plans to raise more than Rs 4,000 crore by selling the unpledged UB shares, ET reported on January 19. The shares were transferred to the agency by the Stock Holding Corporation of India under the Prevention of Money Laundering Act. ED, which secured about 4 crore shares until January, seized an additional 27 lakh
shares later.