The Karnataka High Court on Friday permitted United Breweries Holdings Limited (UBHL), the holding company of Vijay Mallya led UB Group, to sell around 13 million shares of United Spirits Limited at the rate of Rs 1440 per share.
Certain companies which are creditors to UBHL including BNP Paribas had filed company petitions seeking winding up of UBHL as the holding company was unable to pay its debts. In this connection, UBHL had filed an application seeking permission of the court to sell those shares.
Partly allowing the application filed by UBHL, Justice Ram Mohan Reddy gave the permission subject to certain conditions.
The court directed UBHL to deposit the surplus amount of Rs 250 crore in the High Court to show its (UBHL’s) bonafides that that it is willing to pay the petitioners.
It further restrained UBHL from pledging, mortgaging, selling or encumbering all of its moveable and immovable properties until further orders by it.
UBHL, contesting winding up petitions filed by aircraft lessors and financiers of Kingfisher Airlines, had earlier told the court that it would deposit Rs 200 crore on completion of the Diageo deal.
The Diageo deal relates to acquisition of 19.3 per cent stake from the UB Group and two subsidiaries of USL, followed by preferential allotment of new shares that would take Diageo’s stakeholding to 27.4 per cent.
The company had sought permission to sell 13.61 million shares in United Spirits to conclude its deal with Diageo.
The petitioners, including Rolls Royce and Partners Finance, BNP Paribas, Avions de Transport Regional GTE and IAE International Aero Engines AG, had filed their responses to UBHL’s application seeking permission to sell its shares in USL.