Tuesday, June 22, 2021

Heineken gets exemption on open offer in UBL case

Mumbai: The Securities and Exchange Board of India (Sebi) has given an exemption to Heineken International BV from the obligation of making an open offer following its proposed acquisition of shares in United Breweries Ltd (UBL).In June, Heineken International BV made an application to Sebi seeking exemption under the Takeover Code for the proposed acquisition of 3.96 crore equity shares, about14.99% of the total paid-up equity share capital of United Breweries from the recovery officer of the Bengaluru Debts Recovery Tribunal (DRT). The transfer shares owned by the Vijay Mallya group are under custody of the recovery officer of the Bengaluru Debts Recovery Tribunal.The recovery officer has set in motion the process for sale of the transfer shares following a recent PMLA Order.“It is also possible that the number of shares of the Target Company (United Breweries) to be acquired by the Acquirer (Heineken International B V) may be lower than the Transfer Shares depending on: (a) the order of sale passed by the Recovery Officer, (b) any orders/ directions passed by any other Court having jurisdiction and/or any other government authority, or (c) the final decision of the board of directors of the Acquirer in this regard (as the case may be),” Heineken said in its application to Sebi.In 2017, the Bengaluru DRT said Vijay Mallya, United Breweries, Kingfisher Airlines, and Kingfisher Finvest, were jointly and severally liable to pay about ?6,203 crore, plus applicable interest, to the consortium of banks led by State Bank of India.As per the DRT Order, in the event of failure of payment of the outstanding amounts, the SBI consortium is at liberty to sell the mortgaged movable or immovable property and proceed against the person.Heineken International BV submitted to Sebi that each of the Vijay Mallya group transferors have been disclosed as promoters in the shareholding pattern of United Breweries for well in excess of three years and at least since June 2006.Accordingly, in case the transfer shares were transferred to Heineken International BV directly from any of the Vijay Mallya group transferors following the proceedings before the Bengaluru DRT, the same would qualify as a transaction between the qualifying promoters.However, under insolvency and income tax rules, the recovery officer has taken custody of the transfer shares in its own demat account, which may be finally sold through a registered broker on the stock exchange.

from Economic Times https://ift.tt/35OpkBv

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