India: United Breweries (Holdings) seeking shareholders’ approval for earmarking up to Rs 50 crore for investment and loan purpose

United Breweries (Holdings) Ltd is seeking shareholders nod for its plans to earmark up to Rs 50 crore for investment and loan purpose, including provision of an immediate loan of up to Rs 25 crore to UB Engineering, NDTV reported on June 5.

In a BSE filing, the company said it was seeking shareholders' approval through a special resolution to authorise the board to have an outlay of up to Rs 50 crore for proposed loans and investments to be made.


"In the immediate future, the company proposes to extend loans up to Rs 25 crore to UB Engineering Ltd, of which the company as a promoter holds 37.18 per cent of the paid up share capital," it said.

Further, United Breweries (Holdings) Ltd (UBHL) said it was also seeking nod to invest up to Rs 15 crore in Mendocino Brewing Co Inc, which is a step down subsidiary where the company through its subsidiaries holds 68.10 per cent of its share capital.

"The investment in Mendocino Brewing Co. Inc, for which the company has already applied to the Reserve Bank of India for permission to invest, is proposed to be done either directly or through its overseas subsidiary as approved by the Reserve Bank of India," it added.

The surplus limit after such loan and investment may be utilised similarly to fund subsidiaries or associate companies, UBHL added.

UBHL said it was seeking the shareholders' nod as per requirement under the new Companies Act, 2013.

10 June, 2015