The Hindu Business Line : UB buys out 35% in Associated Breweries for Rs 24 crore

UNITED Breweries Ltd, jointly owned by the UB Group Chairman, Mr Vijay Mallya, and the UK brewer Scottish & Newcastle, has bought out the minority stake of 35 per cent in the Mumbai-based Associated Breweries and Distilleries Ltd (ABDL).

The deal has been finalised at a put option price of Rs 24 crore, the company said in a press release.

In the annual general meeting held on September 28, 2004, the shareholders of UB had approved the buy out of the minority stake of 35 per cent in ABDL for a sum not exceeding Rs 35 crore.

The buy out was through an exercise of the put option which was existing with the erstwhile promoters of ABDL. The deal, after protracted negotiations, has been finalised at a revised put option price of Rs 24 crore.

The completion of the deal will be through an escrow mechanism. UB has deposited the put option price of Rs 24 crore in an escrow account. This amount would be released on completion of the formalities by the erstwhile promoters of ABDL with MIDC for perfecting the title to the property in favour of the company.

UB bought 65 per cent stake in ABDL in 2001. ABDL has its brewing unit in Maharashtra in Navi Mumbai and owns brands such as London Pilsner, London No. 1 Strong and Maharaja Lager Beer. The unit has a capacity to produce 20 lakh dozens per annum, which is being fully utilised.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page