Vijay Mallya set to exit United Breweries board?
Vijay Mallya set to exit United Breweries board? Heineken is likely to ask Vijay Mallya, who owes creditor banks more than $1 billion, to step down from the board of United Breweries, India’s largest brewer, three people with direct knowledge of the plan said
Heineken is likely to ask Vijay Mallya, who owes creditor banks more than $1 billion, to step down from the board of United Breweries, India's largest brewer, three people with direct knowledge of the plan said. They said such a move would likely be a prelude to the Dutch drinks firm raising its stake in the maker of Kingfisher beer to above 50 percent, betting on a small but fast-growing beer market. A member of Rajya Sabha, Vijay Mallya is often described as India's answer to British entrepreneur Richard Branson. (Text by Reuters) (Image Source: AP)
Vijay Mallya row: Heineken acquired a 37.5 percent stake in United Breweries in 2008 through its takeover of Scottish & Newcastle and has since increased its holding to 42.4 percent. With Mallya distracted by debts from a collapsed airline venture, this could be a timely grab by Heineken in a market that is growing much faster than the global average. (Image Source: Reuters)
Vijay Mallya row: The sources said Heineken was considering asking Mallya to step down from the United Breweries board he chairs. Alternatively, it could call a shareholder meeting to vote on his ouster from a company his father built into a family empire. (Image Source: Reuters)
Vijay Mallya row: Mallya has already been forced to give up control over United Spirits, part of his UB Group, to Diageo , which now owns about 55 percent of the company. He stepped down from the board last month, receiving a $75 million pay off. On Thursday, creditors auctioning off Kingfisher Airlines' Mumbai headquarters did not receive a single bid, according to a banker with direct knowledge of the process. (Image Source: AP)
Vijay Mallya row: Two-thirds of Indians don't drink alcohol, often for religious or cultural reasons, but rapid urbanisation and a rising middle class are changing consumer habits. India accounts for 13 percent of world beer consumption, and annual volume growth is expected to outpace the global average, and major markets like China, through 2019, according to ratings agency Moody's. (Image Source: AP)