India: UB Holdings looks to raise Rs 1,500 crore to fund expansion

Vijay Mallya's United Breweries Holdings said June 20 it will raise Rs 1,500 crore through borrowings to fund capital expenditure requirements as well as mergers and acquisitions.

The company said it will seek approval for the proposal at an extra ordinary general meeting (EGM) on July 13, which will also consider the issue of a bonus share per share held.

UB Holdings said that the funds would be deployed for "general corporate purposes including capital expenditure, working capital requirements, strategic investment, mergers, demergers, amalgamation, acquisitions, re-constructions or rearrangements or any other re-organisations as the board may deem fit."

It said the money could be raised through various routes, including through banks, financial institutions, multilateral finance institutions or through bonds.

UB Holdings further said that it would seek approval for investing up to Rs 250 crore in Kingfisher Airlines.

20 June, 2006