The Competition Commission of India (CCI) has given an approval to Heineken to increase its stake in United Breweries Ltd (UBL).
This is a step in the right direction for Heineken to further consolidate its holdings in United Breweries. Currently, Heineken owns 46 percent stake in United Breweries. The report suggests that Enforcement Directorate has transferred its 16 percent stake to banks, and they are likely to sell their stake tomorrow in a special window.
If Heineken buys this entire 16 percent stake, which is quite possible, then its entire holding in United Breweries will go up to 62 percent.
According to Moneycontrol.Com’s report, The Securities and Exchange Board of India (SEBI) may give open offer exemption to Heineken, given than it is an inter-promoter transfer. If that is true then it is most likely that in Wednesday’s block deal, Heineken will buy out the entire 16 percent stake and consolidate its holding further to 62 percent.
Watch the accompanying video of CNBC-TV18’s Nimesh Shah for more details.
(Edited by : Dipika)
First Published: IST