E-Malt.com News article: India: Vijay Mallya’s voting rights in United Breweries shrink to just 0.06%

Unit Trust of India Investment Advisory Services (UTI-IAS) has acquired Vijay Mallya’s 3.97% voting rights on pledged shares in United Breweries (UBL) following a default. Hence, Mallya’s voting rights in the company have shrunk to just 0.06%, The Financial Express reported on June 11.

United Breweries in its filing to the BSE stated, “Unit Trust of India Investment Advisory Services in their capacity as the security trustee in relation to term loans secured by a pledge over 1.04 crore shares of the company, have acquired voting rights in relation to the pledged shares upon notification of occurrence of an event of default.”

The disclosure comes at a time when Mallya is facing problems in most companies wherein he owns stakes, including United Spirits (USL). USL has received notices from the ministry of corporate affairs and the I-T Department for an inspection of its accounts and other books.

Diageo-led USL had asked Mallya last month to step down as chairman of the firm, after an internal inquiry report into certain doubtful receivables, advances and deposits revealed that funds were diverted from the company to UB Group companies, including Kingfisher Airlines. The inquiry, ordered by the board last September into certain transactions between 2010 and 2013, suggested that the manner in which certain transactions were conducted, prima facie, indicates various improprieties and legal violations.

Earlier this year, a 17-bank consortium led by state-run SBI initiated the process of taking over physical possession of the prized Kingfisher House, worth Rs 100 crore. UBL makes Kingfisher Strong, India’s biggest-selling beer, as well as London Pilsner and Kalyani Black Label.


12 June, 2015