India & the Netherlands: SEBI exempts Heineken from open offer obligation in United Breweries case

The Securities and Exchange Board of India (SEBI) on June 22 granted an open offer exemption to Heineken International for acquiring additional stake in United Breweries, CNBC TV reported.

According to SEBI, Heineken International had sought exemption from an open offer on June 7 and June 20, which was for a proposed acquisition of a maximum 3.96 crore equity shares (14.99%) of United Breweries.

Heineken International currently holds about 9.28 percent stake in United Breweries and after the proposed transaction, its stake will go all the way up to 24.27 percent.

The matter was referred to the panel of experts (takeover panel) by SEBI. Since the recovery officer was in possession of the shares pursuant to the order of Debt Recovery Tribunal and the applicant (Heineken International) is already a promoter and is in control of the company, SEBI’s takeover panel advised in favour of granting an open offer emption.

SEBI’s takeover panel also considered giving Heineken International an exemption from open offer requirement in light of public interest since the transaction would also help public sector banks recover their dues.

The Competition Commission Of India (CCI), on June 21 also approved additional stake purchase in United Breweries by Heineken International.

United Breweries is engaged in the manufacture, sale and distribution of beer in India.

Heineken International B.V. is an investment holding company and is itself not engaged in any business activity. It is a direct and an indirect shareholder for all non-Dutch companies that form part of the Heineken Group.

22 June, 2021