mangalore today

Mallya’s share selling triggers speculation


Mangalore Today News/ Yahoo news

Bangalore, Nov 2: The sale of shares in a United Breweries (UB) Group holding company by promoter and chairman Vijay Mallya has raised eyebrows in financial circles for the low-key manner in which they were offloaded.

Mallya is fighting to get Kingfisher Airlines back in air after employees, unpaid since April, struck work and the aviation regulator raised questions on air- worthiness of its aircraft.

 

mallya-sells shares


In the July- September quarter, three Mallya-controlled companies offloaded 8.41 per cent stake in United Breweries Holdings Ltd, or UBHL, thus paring their stake to 43 per cent.

UB has at least 21 subsidiaries under it, according to its annual report, in a group with estimated revenues of around ` 22,000 crore. The holding company’s stock touched a 52- week high of ` 155.90 on September 27 on the National Stock Exchange from their 52- week lowest price of ` 53.50.

The rally was triggered by the reports that the world’s largest distiller by value, Diageo, was buying a stake in United Spirits Ltd. UBHL holds 18 per cent in USL, the world’s No. 1 liquor company by volumes sold that has a dominant 55 per cent share of the domestic liquor market with brands such as Royal Challenge, Black Dog and McDowell’s Celebration. The holding company owns 11.46 per cent in United Breweries, which makes and sells Kingfisher beer, and 24.5 per cent in Kingfisher Airlines.

The three Mallya companies that sold stake in UBHL are Kamsco Industries, Gem Investment and Mallya Pvt Ltd.

The exact amount realised is not clear but the sale of 5.26 million shares could have yielded anything between ` 28 crore and ` 82 crore.

“ It is being speculated that a United Spirit deal may help UB Holdings,” says Kishore Ostwal, head, CNI Research.