Heineken to oust United Breweries after acquiring majority stake
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Heineken International that increased its shareholding in United Breweries from 46.5 per cent to 61.5 per cent recently is seeking approval of shareholders to change the company's Articles of Association (AoA) that will enable it to nominate a chairman. Fugitive liquor baron Vijay Mallya is the chairman for life and has sole authority to nominate a successor. Heineken had, a few days ago, acquired Mallya's shares from the Debt Recovery Tribunal to increase its shareholding in the company.
Heineken is scheduled to seek approval at UBL's annual general meeting scheduled for July 29. In case Mallya agrees to change the existing shareholder agreement ahead of the AGM, the beer maker might call off the resolution.
While Heineken is the majority shareholder, the AoA currently mandates 75 per cent shareholding to seek approval from shareholders through an AGM. Nevertheless, Heineken has reportedly discussed the issues with financial institutions.
The original agreement signed between Mallya and erstwhile partner Scottish & Newscastle, which was acquired by Heineken in 2008 is yet to be changed.
