Vijay Mallya’s United Breweries Ltd has said that one of its trusts has sold the entire 2.36 per cent stake held by it in the company for Rs 285 crore. The shares have been placed with “select long-term, high-quality institutional investors,” United Breweries stated in a filing to the exchanges.
The shares were allotted to United Breweries after its merger with group companies Associated Breweries and Distilleries Ltd, Millennium Alcobev Pvt Ltd and Empee Breweries Ltd. UBS Securities India was the broker on the deal.
Out of the six million-plus shares sold by UBL Benefit Trust, the New World Fund, Inc. (Capital Group’s emerging markets fund) picked nearly 5.2 million shares or around 2 per cent stake in the company. The shares were sold at Rs 475, over 4 per cent discount to United Breweries’ closing price of Rs 495.25 on Friday, July 8.
The share price of United Breweries went up nearly 6.5 per cent after the transaction was announced and closed at Rs 497 per scrip, up only 0.37 per cent.
United Breweries reported revenues of Rs 2,779 crore in FY11, with a net profit of Rs 168 crore during the year. The Bangalore-based firm, which sells brands like Kingfisher, had FY11 sales of 140 million cases (post-merger), with 54 per cent market share.
While the promoters hold over 74 per cent stake in United Breweries, other shareholders include hedge funds like Tree Line Asia and Acacia Partners LP.