Dutch- Beer Maker Heineken Buys Rs 74 Lakh Share of United Breweries from ED

Lager Beer maker Heineken is buying Rs 74 lakh shares of United Breweries Holding (UBHL) from the ED which fetched the government agency Rs 1,008 crore earlier this week.

The shares, which are equivalent to 2.8% stake in United Breweries once helmed by Vijay Mallya, will help push up Heineken’s hold over India’s largest beer maker to about 46%.

The Dutch-beer maker has been trying for years to get a majority stake in UB—51%—but have been futile since Mallya’s entire holding has been attached. The shares were pledged by Mallya to Yes Bank as security against loans taken by Kingfisher Airlines. The money amassed will help the consortium of lenders, led by SBI, to recover loans turned nonperforming assets (NPA) worth Rs 9,000 crore. The ED has already identified properties worth Rs 12,500 crore including Rs 9,000 crore already attached under the Prevention of Money Laundering Act.

In 2016, Heineken had bought similar pledged shares from banks and other lenders. Mallya and his holding companies still hold 13.8% of United Breweries, as per the latest shareholding pattern in December 2018, but with the current share sale, it will come down to about 11%.