The Dutch brewing company has proposed that it purchase the seized shares from the Enforcement Directorate and take complete control of the company.
Dutch brewing company Heineken International has proposed to increase its shareholding in United Breweries (UB) to around 58 percent, by acquiring former chairman Vijay Mallya's unpledged shares, according to an Economic Times report.
The second largest beer-brewing company submitted a proposal to the Enforcement Directorate (ED) to buy seized shares under its possession and take complete control of the company.
JM Financial reportedly submitted the proposal representing Heineken, which is seeking to buy Mallay's 29.46 percent shares (which have been seized the ED due to non-payment of loan dues to banks).
If both Heineken and UB Group decide to reach an agreement, there will be no need for an open offer.
The Articles of Association prevent Heineken from buying UB shares unless it was a bilateral deal. The article states that Mallya is entitled to stay on the board of UB Group as its chairman for life and remain a non-retiring director, else he can step down voluntarily and nominates someone else.
The ED took over Mallya’s shares over allegations of loan diversion and default on repayment of loan dues to banks.
Currently, each share is priced at Rs 1,020 and the ED aims to raise more than Rs 4,000 crore by selling the unpledged shares.
UB Group has been holding its board meeting in Mallya's absence, who has been residing in the UK, after fleeing the country. The Securities and Exchanges Board of India had earlier declared Mallya unfit to be the chairman of a listed company.
