Heineken has made a strong move which brings it more closer to India. They have bought 85 lakh shares in United Breweries from The United Spirits (USL). Heineken is now major shareholder of United Breweries. The Dutch brewer has paid a whooping amount of Rs.872 crore ($137 million) for the deal.
This gives Heineken leverage in management of affairs of India’s largest beer producer. The cost of per share was about Rs. 1,030,which is slightly above the closing price on Tuesday which was Rs.1,014. Heineken’s shares have increased from 39% to 42.1%. This gives them more power over the company than Vijay Mallya.
However,Mallya is not in danger of losing the firm as he stil has 37.5% shares and both the partners will have equal shareholder rights. But still Heineken will have a higher authority over the company’s affairs because of the more shareholding.
The deal took place weeks after Diageo asked Vijay Mallya to quit as the Chairman of USL. But Mallya refused their proposition. Also IPL team Royal Challengers Bangalore might be up for sale next season.
The ‘King of Good times’ is definitely not experiencing best of it’s days.