India: UB Group loses some more shares in United Spirits

Vijay Mallya’s UB Group lost about 0.34% stake in its liquor company United Spirits Ltd after lenders sold pledged shares in the company, Livemint reported on February 18.

United Breweries (Holdings) Ltd, the UB Group’s holding company, now owns 5.93% in United Spirits, down from 6.27% earlier.

Lenders who were pledged stock against money borrowed by UB Group companies sold some 500,000 United Spirits shares, according to a filing with BSE on February 18.

Mallya has been losing control of his group companies including United Spirits, Mangalore Chemicals and Fertilizers Ltd and United Breweries Ltd as lenders have lost confidence in the conglomerate’s ability to repay debt.

Both Mallya and United Spirits sold stake to British rival Diageo Plc last July to raise much-needed funds and reduce debt.

Diageo is now the majority shareholder in United Spirits and owns nearly 30% in India’s largest liquor company.

Shares of United Spirits were trading up 1.43% at Rs.2,348 apiece on February 18 afternoon.

19 February, 2014