UB ready to buyback Heineken stake

Agencies
Posted: Thursday, Mar 27, 2008 at 1159 hrs IST
Updated: Thursday, Mar 27, 2008 at 1222 hrs IST

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Baramati, March 27:: Liquor baron Vijay Mallya on Thursday said his UB Group is ready to buyback stake from Heineken, which the latter had acquired in the group following the takeover of Scottish & Newcastle (S&N), saying there is a conflict of business interest.

"They have beer business in India, which has a conflict of interest as Kingfisher is the largest beer brand in the country. I am ready to buy back," Mallya said here while opening United Spirits' Baramati Four Seasons winery in Baramati.

He said Heineken would have to renegotiate the deal through which it had inherited the business interests of S&N in India. Earlier in January, a consortium of Carlsberg and Heineken had acquired S&N for 7.5 billion pounds. S&N had 37.5 per cent stake in the UB Group.

As per the takeover agreement, Heineken was supposed to continue to hold S&N's business in the UK, Ireland, Portugal, Finland, Belgium, the US and India.

Carlsberg on the other hand pocketed the S&N's operatins in France, Greece, China, Vietnam and Russia. The takeover had also raised speculation whether there would be an open offer by Heineken for UB group shares.

UB Group had, however, clarified that there was an unlikelihood of it happening as in the past there were instances of takeovers, which had notrequired an open offer.

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