United Breweries agrees to deposit Rs.200 cr with HC

Written by feBureau | Bangalore | Updated: Apr 9 2013, 06:35am hrs
The Vijay Mallya-controlled United Breweries Holdings Ltd (UBHL) on Monday told the Karnataka High Court said that it would deposit about R 200 crore from the proceeds of the Diageo deal and the sale of commercial space in Bangalore. The company said this during a hearing on the admission of winding-up petitions by aircraft lessors and financiers to Kingfisher Airlines.

The company, which will require the courts permission to conclude the Diageo deal as it involves alienation of assets, had last month given the court an undertaking to deposit R100 crore from the proceeds of the deal in a bid to show its bonafides.

UBHL, the holding company for the group, said on Monday that it would be able to deposit R119 crore from the proceeds of the sale of its stake in United Spirits Ltd (USL) to UK-based Diageo Plc. It also said that it expected to get R80 crore from sale of commercial space in its UB City property in Bangalore, which it would deposit in the court.

The company told the court that as much as R1,595 crore from the proceeds of the Diageo stake sale would go to the companys secured creditors. The court, which posted the hearing to next week, has asked the company to file an application in this regard.

The petitioners, who include Rolls Royce and Partners Finance, BNP Paribas, Avions de Transport Regional GTE and IAE International Aero Engines AG, had moved the court to recover dues amounting to over R400 crore. The petitions were filed between March and November last year.

The Diageo deal involves the acquisition of 19.3% stake from the UB Group and two subsidiaries of USL, followed by preferential allotment of new shares that would take Diageos stakeholding to 27.4%. This triggers an obligation on Diageo to launch a mandatory tender offer to the public shareholders.

The open offer to acquire 26% of the enlarged share capital of USL would run between April 10 and April 26, the offer manager said last week.